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SPIRIT REALTY CAPITAL, INC. - Annual Report: 2020 (Form 10-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-K
 
 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 2020
Commission File Number
 
   
Spirit Realty Capital, Inc.
 
    001-36004
    
   
Spirit Realty, L.P.
 
    333-216815-01
    
 
 
SPIRIT REALTY CAPITAL, INC.
SPIRIT REALTY, L.P.
(Exact name of registrant as specified in its charter)
 
 
 
Spirit Realty Capital, Inc.
  
Maryland
  
20-1676382
Spirit Realty, L.P.
  
Delaware
  
20-1127940
    
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification Number)
    
2727 North Harwood Street, Suite 300, Dallas, Texas
75201
  
(972)
476-1900
    
(Address of principal executive offices; zip code)
  
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading Symbol(s)
 
Name of exchange on which registered
Common Stock, $0.05 par value per share
 
SRC
 
New York Stock Exchange
6.000% Series A Cumulative Redeemable
Preferred Stock, $0.01 par value per
share
 
 
SRC-A
 
 
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
 
   
            Spirit Realty Capital, Inc.
  
None
    
   
            Spirit Realty, L.P.
  
None
    
 
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
                        Spirit Realty Capital, Inc.         Yes         
No         
                Spirit Realty, L.P.         Yes         
No        
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
                        Spirit Realty Capital, Inc.         Yes         
No         
                Spirit Realty, L.P.         Yes         
No        
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
                        Spirit Realty Capital, Inc.         Yes         
No         
                Spirit Realty, L.P.         Yes         
No        
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    
                        Spirit Realty Capital, Inc.         Yes         
No         
                Spirit Realty, L.P.         Yes         
No        
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Spirit Realty Capital, Inc.
 
Large accelerated filer
  
       Accelerated filer   
  
    Non-accelerated filer
  
       Smaller reporting company   
    
Emerging growth company
  
                             
Spirit Realty, L.P.
 
Large accelerated filer
  
       Accelerated filer   
  
    Non-accelerated filer
  
       Smaller reporting company   
    
Emerging growth company
  
                             
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
                        Spirit Realty Capital, Inc.           
            Spirit Realty, L.P.           
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
                        Spirit Realty Capital, Inc.         Yes        
No       
            Spirit Realty, L.P.       Yes        
No      
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2
of the Exchange Act).
                        Spirit Realty Capital, Inc.         Yes        
No      
            Spirit Realty, L.P.       Yes        
No      
As of June 30, 2020 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of Spirit Realty Capital, Inc.’s shares of common stock, $0.05 par value, held by
non-affiliates
of the Registrant, was $3.6 billion based on the last reported sale price of $34.86 per share on the New York Stock Exchange on June 30, 2020.
There is no public trading market for the common units of limited partnership interest of Spirit Realty, L.P. As a result, the aggregate market value of the common units of limited partnership interest held by
non-affiliates
of Spirit Realty, L.P. cannot be determined.
The number of outstanding shares of Spirit Realty Capital, Inc.’s common stock, $0.05 par value, as of February 16, 2021, was 114,861,919 shares.
Documents Incorporated by Reference
Certain specific portions of the definitive Proxy Statement for Spirit Realty Capital, Inc.’s 2021 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14 of this Annual Report on Form
10-K.
Only those portions of the Proxy Statement which are specifically incorporated by reference herein shall constitute a part of this Annual Report on Form
10-K.
 
 
 

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EXPLANATORY NOTE
This report combines the annual reports on Form
10-K
for the year ended December 31, 2020 of Spirit Realty Capital, Inc., a Maryland corporation, and Spirit Realty, L.P., a Delaware limited partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” or the “Company” refer to Spirit Realty Capital, Inc. together with its consolidated subsidiaries, including Spirit Realty, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to the “Operating Partnership” refer to Spirit Realty, L.P. together with its consolidated subsidiaries.
Spirit General OP Holdings, LLC (“OP Holdings”) is the sole general partner of the Operating Partnership. The Company is a real estate investment trust (“REIT”) and the sole member of OP Holdings, as well as the special limited partner of the Operating Partnership. As sole member of the general partner of our Operating Partnership, our Company has the full, exclusive and complete responsibility for our Operating Partnership’s
day-to-day
management and control.
We believe combining the annual reports on Form
10-K
of our Company and Operating Partnership into a single report results in the following benefits:
 
 
enhancing investors’ understanding of our Company and Operating Partnership by enabling investors to view the business as a whole, reflective of how management views and operates the business;
 
 
eliminating duplicative disclosure and providing a streamlined presentation as a substantial portion of the disclosures apply to both our Company and Operating Partnership; and
 
 
creating time and cost efficiencies by preparing one combined report in lieu of two separate reports.
There are a few differences between our Company and Operating Partnership, which are reflected in the disclosures in this report. We believe it is important to understand these differences in the context of how we operate as an interrelated, consolidated company. Our Company is a REIT, the only material assets of which are the partnership interests in our Operating Partnership. As a result, our Company does not conduct business itself, other than acting as the sole member of the general partner of our Operating Partnership, issuing equity from time to time and guaranteeing certain debt of our Operating Partnership. Our Operating Partnership holds substantially all the assets of our Company. Our Company issued convertible notes and guarantees some of the debt of our Operating Partnership, see Note 4 to the consolidated financial statements herein for further discussion. Our Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from issuance of convertible notes and equity issuances by our Company, which are generally contributed to our Operating Partnership in exchange for partnership units of our Operating Partnership, our Operating Partnership generates the capital required by our Company’s business through our Operating Partnership’s operations or our Operating Partnership’s incurrence of indebtedness.
The presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of our Company and those of our Operating Partnership. The partnership units in our Operating Partnership are accounted for as partners’ capital in our Operating Partnership’s consolidated financial statements. There are no
non-controlling
interests in the Company or the Operating Partnership.
To help investors understand the significant differences between our Company and our Operating Partnership, this report presents the consolidated financial statements separately for our Company and our Operating Partnership. All other sections of this report, including “Selected Financial Data,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures About Market Risk,” are presented together for our Company and our Operating Partnership.
In order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that our Company and Operating Partnership are compliant with Rule
13a-15
or Rule
15d-15
of the Securities Exchange Act of 1934, or the Exchange Act, and 18 U.S.C. §1350, this report also includes separate “Item 9A. Controls and Procedures” sections and separate Exhibit 31 and 32 certifications for each of our Company and our Operating Partnership.

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GLOSSARY
 
1031 Exchange
  
Tax-deferred
like-kind exchange of properties held for business or investment purposes, pursuant to Section 1031 of the Code
2015 Credit Agreement
  
Revolving credit facility agreement between the Operating Partnership and certain lenders dated March 31, 2015, as amended or otherwise modified from time to time
2015 Credit Facility
  
$800.0 million unsecured credit facility pursuant to the 2015 Credit Agreement
2015 Term Loan
  
$420.0 million senior unsecured term facility pursuant to the 2015 Term Loan Agreement
2015 Term Loan Agreement
  
Term loan agreement between the Operating Partnership and certain lenders dated November 3, 2015, as amended or otherwise modified from time to time
2016 ATM Program
  
At the market equity distribution program established in November 2016, which was terminated upon entry into the 2020 ATM Program
2017 Tax Legislation
  
Tax Cuts and Jobs Act of 2017
2019 Credit Facility
  
$800.0 million unsecured revolving credit facility pursuant to the 2019 Revolving Credit and Term Loan Agreement
2019 Facilities Agreements
  
2019 Revolving Credit and Term Loan Agreement and
A-2
Term Loan
2019 Notes
  
$402.5 million convertible notes of the Corporation due in 2019
2019 Revolving Credit and Term Loan Agreement
  
Revolving credit and term loan agreement between the Operating Partnership and certain lenders dated January 14, 2019, as amended or otherwise modified from time to time
2020 ATM Program
  
At the market equity distribution program established in November 2020, pursuant to which the Corporation may offer and sell registered shares of common stock from time to time
2020 Term Loans
  
$400.0 million senior unsecured term facility pursuant to the 2020 Term Loan Agreement
2020 Term Loan Agreement
  
Term loan agreement between the Operating Partnership and certain lenders dated April 2, 2020, as amended or otherwise modified from time to time
2021 Notes
  
$345.0 million convertible notes of the Corporation due in 2021
2026 Senior Notes
  
$300.0 million aggregate principal amount of senior notes issued in August 2016
2027 Senior Notes
  
$300.0 million aggregate principal amount of senior notes issued in September 2019
2029 Senior Notes
  
$400.0 million aggregate principal amount of senior notes issued in June 2019
2030 Senior Notes
  
$500.0 million aggregate principal amount of senior notes issued in September 2019
2031 Senior Notes
  
$450.0 million aggregate principal amount of senior notes issued in August 2020
401(k) Plan
  
Defined contribution retirement savings plan qualified under Section 401(k) of the Code
A-1
Term Loans
  
$420.0 million unsecured term loan facility pursuant to the 2019 Revolving Credit and Term Loan Agreement
A-2
Term Loans
  
$400.0 million unsecured term loan facility pursuant to a term loan agreement between the Operating Partnership and certain lenders dated January 14, 2019, as amended or otherwise modified from time to time
ACM
  
Asbestos-Containing Materials
ADA
  
Americans with Disabilities Act
Adjusted Debt
  
Adjusted Debt is a
non-GAAP
financial measure. See definition in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Adjusted EBITDA
re
  
Adjusted EBITDA
re
is a
non-GAAP
financial measure. See definition in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
AFFO
  
Adjusted Funds From Operations. See definition in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Amended Incentive Award Plan
  
Amended and Restated Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan, as amended
Annualized Base Rent (ABR)
  
Represents Base Rent and earned income from direct financing leases from the final month of the reporting period, adjusted to exclude amounts from properties sold during that period and to include a full month of rental income for properties acquired during that period. The total is then multiplied by 12. We use ABR when calculating certain metrics that are useful to evaluate portfolio credit and diversification and to manage risk.
AOCL
  
Accumulated Other Comprehensive Loss
ASC
  
Accounting Standards Codification
Asset Management Agreement
  
Asset Management Agreement between Spirit Realty, L.P. and Spirit MTA REIT dated May 31, 2018 and subsequently assigned by Spirit Realty, L.P. to Spirit Realty AM Corporation on April 1, 2019
ASU
  
Accounting Standards Update
ATM Program
  
The 2016 ATM Program or the 2020 ATM Program, as applicable
Base Cash Rent
  
Represents Base Rent reduced for amounts abated and rent deemed not probable of collection.
Base Rent
  
Represents contractual rental income for the period, prior to deferral and abatement agreements, and excluding contingent rents. We use Base Rent to monitor cash collection and to evaluate past due receivables.
CMBS
  
Commercial Mortgage-Backed Securities
Code
  
Internal Revenue Code of 1986, as amended
Company
  
The Corporation and its consolidated subsidiaries
Convertible Notes
  
The 2019 Notes and 2021 Notes, together
Corporation
  
Spirit Realty Capital, Inc., a Maryland corporation
CPI
  
Consumer Price Index
EBITDA
  
Earnings Before Interest, Taxes, Depreciation and Amortization
EBITDA
re
  
EBITDA
re
 is a
non-GAAP
financial measure and is computed in accordance with standards established by NAREIT. See definition in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Exchange Act
  
Securities Exchange Act of 1934, as amended
FASB
  
Financial Accounting Standards Board
FFO
  
Funds From Operations. See definition in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
GAAP
  
Generally Accepted Accounting Principles in the United States
Interim Management Agreement
  
Interim Management Agreement between Spirit Realty AM Corporation, a wholly-owned subsidiary of the Company, and Spirit MTA REIT dated June 2, 2019 and effective September 20, 2019
IPO
  
Initial Public Offering
IRS
  
Internal Revenue Service
LIBOR
  
London Interbank Offered Rate
Master Trust 2013
  
The
net-lease
mortgage securitization trust established in December 2013
Master Trust 2014
  
The
net-lease
mortgage securitization trust established in 2005 and amended and restated in 2014
Master Trust Notes
  
Master Trust 2013 and Master Trust 2014, together

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Master Trust Release
  
Proceeds from the sale of assets securing the Master Trust Notes held in restricted accounts until a qualifying substitution is made or until used for principal reduction
MGCL
  
Maryland General Corporation Law
NAREIT
  
National Association of Real Estate Investment Trusts
NYSE
  
New York Stock Exchange
OP Holdings
  
Spirit General OP Holdings, LLC
Operating Partnership
  
Spirit Realty, L.P., a Delaware limited partnership
Porter’s Five Forces
  
An analytical framework used to examine the attractiveness of an industry and potential for disruption in that industry based on: threats of new entrants, threats of substitutes, the bargaining power of customers, the bargaining power of suppliers and industry rivalry
Property Management and Servicing Agreement
  
Second amended and restated agreement governing the management services and special services provided to Master Trust 2014 by Spirit Realty, L.P., dated as of May 20, 2014, as amended, supplemented, amended and restated or otherwise modified
REIT
  
Real estate investment trust
S&P
  
S&P’s Global Ratings
SEC
  
Securities and Exchange Commission
Securities Act
  
Securities Act of 1933, as amended
Senior Unsecured Notes
  
2026 Senior Unsecured Notes, 2027 Senior Unsecured Notes, 2029 Senior Unsecured Notes, 2030 Senior Unsecured Notes and 2031 Senior Unsecured Notes, collectively
Series A Preferred Stock
  
6,900,000 shares of 6.000% Cumulative Redeemable Preferred Stock issued October 3, 2017, with a liquidation preference of $25.00 per share.
Shopko
  
Specialty Retail Shops Holding Corp. and certain of its affiliates
SMTA
  
Spirit MTA REIT, a Maryland real estate investment trust, or SMTA Liquidating Trust, a Maryland common law trust, as the context dictates. On January 1, 2020, Spirit MTA REIT transferred all of its assets (subject to all of its liabilities) to SMTA Liquidating Trust.
Spin-Off
  
Creation of an independent, publicly traded REIT, SMTA, through our contribution of properties leased to Shopko, assets that collateralize Master Trust 2014 and other additional assets to SMTA followed by the distribution by us to our stockholders of all of the common shares of beneficial interest in SMTA.
SubREIT
  
Spirit MTA SubREIT, Inc., previously a wholly-owned subsidiary of SMTA. SubREIT was dissolved on October 1, 2019.
Spirit Heat Map
  
An analysis of industries across Porter’s Five Forces and potential causes of technological disruption to identify tenant industries which Spirit believes to have good fundamentals for future performance
Spirit Property Ranking Model
  
A proprietary model used annually to rank properties across twelve factors and weightings consisting of both real estate quality scores and credit underwriting criteria, in order to benchmark property quality, identify asset recycling opportunities and to enhance acquisition or disposition decisions
TRS
  
Taxable REIT subsidiary, which is a corporation, other than a REIT, in which a REIT directly or indirectly holds stock and that has made a joint election with such REIT to be treated as a taxable REIT subsidiary and meets certain other requirements
TSR
  
Total Shareholder Return
Unless otherwise indicated or unless the context requires otherwise, all references to the “registrant,” the “Company,” “Spirit Realty Capital,” “we,” “us” or “our” refer to the Corporation and its consolidated subsidiaries, including the Operating Partnership. Unless otherwise indicated or unless the context requires otherwise, all references to the “Operating Partnership” refer to Spirit Realty, L.P. and its consolidated subsidiaries.

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INDEX
 
 
 
  
Item 1.
  
  
 
7
 
 
  
Item 1A.
  
  
 
13
 
 
  
Item 1B.
  
  
 
28
 
 
  
Item 2.
  
  
 
29
 
 
  
Item 3.
  
  
 
31
 
 
  
Item 4.
  
  
 
31
 
       
  
 
  
 
  
     
 
  
Item 5.
  
  
 
32
 
 
  
Item 6.
  
  
 
34
 
 
  
Item 7.
  
  
 
35
 
 
  
Item 7A.
  
  
 
52
 
 
  
Item 8.
  
  
 
53
 
       
  
 
  
 
  
     
 
  
Item 9.
  
  
 
110
 
 
  
Item 9A.
  
  
 
110
 
 
  
Item 9B.
  
  
 
111
 
 
  
Item 10.
  
  
 
111
 
 
  
Item 11.
  
  
 
111
 
 
  
Item 12.
  
  
 
111
 
 
  
Item 13.
  
  
 
112
 
 
  
Item 14.
  
  
 
112
 
       
  
 
  
 
  
     
 
  
Item 15.
  
  
 
113
 
 
  
Item 16.
  
  
 
117
 
   
  
 
171
 
 
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form
10-K
contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this Annual Report, the words “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximately” or “plan,” or the negative of these words or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management.
Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).
The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:
 
   
industry and economic conditions;
 
   
volatility and uncertainty in the financial markets, including potential fluctuations in the CPI;
 
   
our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate, integrate and manage diversifying acquisitions or investments;
 
   
the financial performance of our retail tenants and the demand for retail space, particularly with respect to challenges being experienced by general merchandise retailers;
 
   
our ability to diversify our tenant base;
 
   
the nature and extent of future competition;
 
   
increases in our costs of borrowing as a result of changes in interest rates and other factors;
 
   
our ability to access debt and equity capital markets;
 
   
our ability to pay down, refinance, restructure and/or extend our indebtedness as it becomes due;
 
   
our ability and willingness to renew our leases upon expiration and to reposition our properties on the same or better terms upon expiration in the event such properties are not renewed by tenants or we exercise our rights to replace existing tenants upon default;
 
   
the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us or our major tenants;
 
   
our ability to manage our expanded operations;
 
   
our ability and willingness to maintain our qualification as a REIT;
 
   
the impact on our business and those of our tenants from epidemics, pandemics or other outbreaks of illness, disease or virus (such as the strain of coronavirus known as
COVID-19);
and
 
   
other risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Annual Report on Form
10-K.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.
 
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PART I
 
Item 1.
  Business
Overview
 
 
We are a self-administered and self-managed REIT with
in-house
capabilities including acquisition, credit research, asset management, portfolio management, real estate research, legal, finance and accounting functions. We primarily invest in single-tenant, operationally essential real estate assets throughout the United States, which are subsequently leased on a long-term,
triple-net
basis to high quality tenants with operations in retail, industrial, office and certain other industries.
As of December 31, 2020, Spirit owned a diversified portfolio of 1,860 properties with gross investment in real estate totaling approximately $6.8 billion and with
in-place
Annualized Base Rent of $509.6 million. See Item 2. “Properties - Our Real Estate Investment Portfolio” for further information on our portfolio diversification.
Our operations are carried out through the Operating Partnership. OP Holdings, one of our wholly-owned subsidiaries, is the sole general partner and owns approximately 1% of the Operating Partnership. We and one of our wholly-owned subsidiaries are the only limited partners and together own the remaining 99% of the Operating Partnership.
Shares of our common stock are traded on the NYSE under the symbol “SRC.”
Business and Growth Strategies
 
 
Our objective is to maximize stockholder value by providing a growing stream of earnings and dividends generated by high quality, diversified commercial real estate. We seek to accomplish this objective by utilizing our proprietary tools and underwriting expertise to invest in and manage a high-quality portfolio of single tenant, operationally essential real estate throughout the United States, which generally consists of free-standing, commercial real estate facilities where our tenants conduct activities essential to the generation of their sales and profits. We then generate revenue
 
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primarily by leasing these properties to tenants we believe possess attractive credit characteristics and operate in stable or growing industries. Our leases are typically structured as
triple-net
leases, whereby the tenant is responsible for all improvements and is contractually obligated to pay all property operating expenses, such as real estate taxes, insurance premiums and repair and maintenance costs.
 
STRONG OPERATING SYSTEMS
Spirit utilizes integrated tools that streamline key processes for acquisitions, tenant monitoring and managing our capital structure, forecasts and records. We believe the effective use of our technology platforms to inform portfolio management decisions provides efficiency, depth and scalability to our processes, allowing us to seamlessly execute our objectives. To enhance our operating systems, we have developed several proprietary tools to minimize risk and maximize returns for our stockholders:
 
  o
Spirit Property Ranking Model.
The Spirit Property Ranking Model is a core tool developed internally by Spirit that ranks every owned and acquired property across twelve criteria, with a higher weighting allocated to real estate characteristics. The criteria are: (i) replacement rent, assuming the property becomes vacant, (ii) real estate score based on the site’s location, access, visibility and overall desirability, (iii)
5-mile
population, (iv) remaining lease term, (v)
5-mile
house-hold income,
(vi) pre-overhead
unit coverage,
(vii) pre-overhead
master lease coverage, (viii) corporate coverage, (ix) U.S. State ranking, (x) rent escalation characteristics, (xi) lease structure and (xii) tenant industry ranking. We believe that the higher the overall score assigned to a property, the lower the risk of a residual loss given a tenant default. Through acquisitions, dispositions, lease renewals and
re-lets,
we seek to continually improve the weighted-average property ranking of our portfolio.
 
  o
The Spirit Heat Map.
The Spirit Heat Map is used to analyze tenant industries across Porter’s Five Forces and for potential causes of technological disruption. The data is then used to predict the long-term future performance of those industries. The Spirit Heat Map is updated regularly to incorporate changes in business and market conditions, changes in technology and other trends. Using this tool, coupled with our intensive credit and real estate analysis, lease structuring and ongoing portfolio management, we seek to achieve superior risk-adjusted returns by focusing our investments within industries that we believe will be healthy and viable prospectively and disposing of properties within industries that have less favorable outlooks.
 
  o
Spirit Business Intelligence Tools.
Our business intelligence tools capture and bring together critical information across Spirit’s databases, including Spirit Property Ranking Model data, industry data and tenant credit data, allowing the information to be efficiently analyzed. Spirit uses these tools to compare potential acquisitions and dispositions to the existing portfolio and quantify improvements in key metrics including industry concentration, tenant concentration, weighted-average lease term, weighted-average Spirit property ranking and credit metrics.
 
OUTSTANDING PEOPLE
We have implemented sound social, human capital management and environmental practices and policies throughout the operation of our business, demonstrating our solid commitment to be responsible and conscientious in everything that we do as we strive to both drive long-term stakeholder value and make the communities in which we operate a better place to live and work. We have documented these commitments in our Social Responsibility and Environmental Sustainability Policy and our Code of Business Conduct and Ethics, each of which can be accessed on the Investor Relations page of our website at www.spiritrealty.com. One of these key pillars is human capital management. We believe attracting, developing and retaining a team of highly talented and motivated employees is critical to reflecting our “all one team” motto and delivering strong financial results:
 
  o
Talent acquisition and development.
To ensure we retain top talent, we provide competitive compensation and benefits, including stock awards for all employees. We aim to develop our employees by providing internal training, leadership coaching programs and providing tuition assistance and course reimbursement for career-enhancing education and licensure requirements. We encourage both formal and informal mentorship to provide employees with critical developmental feedback and all employees have direct access to the executive team, including through monthly “Town Hall” meetings hosted by our CEO. Goals are set annually for each employee and performance is measured at least twice a year on these goals, as well as on each of our core competencies: managing resources, leadership, communication, accountability and teamwork. We look first to promote from within, but when external hires are needed to fill open positions, we use a thorough hiring
 
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process which includes multiple levels of interviews, cultural surveys, and technical skill testing, when appropriate, to ensure candidates will be an appropriate fit.
 
  o
Diversity and inclusion.
We provide equal employment opportunities to all individuals and seek to cultivate an inclusive culture that respects and appreciates diversity of experience, ideas and opinions. Our employee population is very diverse: approximately half of our employees are female, 27% are from racial or ethnic minority groups, and we have well-rounded age diversity. To promote inclusivity, our Diversity and Inclusion Committee is tasked with providing educational and social programming for all affinity groups, as well as directing support to charitable organizations in line with our diversity efforts. Under the Diversity and Inclusion Committee, we have a Women’s Leadership Council, which focuses specifically on empowering the women of Spirit in personal and professional growth. With the support of our Board of Directors, we continue to explore additional diversity and inclusion initiatives.
 
  o
Employee wellness.
The physical and mental well-being of our employees is an important piece of our business and overall success. We have implemented numerous wellness initiatives, including wellness screenings and guided meditation sessions. Our offices were designed with employee health and well-being in mind
(sit-stand
desks, ergonomic chairs, healthy snack options, maximized natural light in all workspaces, designated creative and collaborative workspaces). In response to the
COVID-19
pandemic, we took a number of actions to ensure the health and safety of our employees, including enabling all employees to work from home, enhancing safety measures in our offices for voluntary return to office (including increasing cleaning and sanitizing procedures, temperature screening upon entering the office, providing personal protective equipment, installing plexiglass wellness screens and initiating social distancing measures), and instituted a special
COVID-19
pandemic leave policy for illness or caretaking.
 
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Workplace culture.
We actively seek to create a
best-in-class
workplace culture through corporate culture workshops and conducting employee surveys. Results of the surveys are communicated to all employees, as well as to our Board of Directors, to provide transparency and continuous improvement. We also seek to acknowledge employee successes through recognition at monthly “Town Hall” meetings. We firmly believe that regular social and team building events for our employees encourage socialization, collaboration, and relationship building – all things that are vital for employee engagement and result in a high performing “all one team” culture. We promote social engagement through our Spirit One Committee (comprised of employees across all levels and departments who collaborate to create social programming), annual company-wide events (including a virtual holiday season party in 2020), and department team building events throughout the year.
As of December 31, 2020, we had 82 employees, as compared to 85 employees as of December 31, 2019. None of these employees are represented by a labor union.
 
DEFINED AND DISCIPLINED INVESTMENT STRATEGY
During the year ended December 31, 2020, we purchased 146 properties, representing an aggregate gross investment of $868.2 million, and invested $10.0 million in revenue producing capital expenditures to fund improvements on properties we already owned. During the same period, we sold 38 properties with an undepreciated gross investment of $86.0 million. We selectively make acquisitions and dispositions that we believe will contribute to our business objectives. We believe there will be ample acquisition opportunities in the single-tenant market fitting our underwriting and acquisition criteria.
 
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Sourcing acquisitions.
We believe a multi-channel approach drives acquisition volume and are focused on building and growing partnerships with a diverse base of tenants and brokers. Over time, our target is a balanced mix of opportunities sourced from direct relationships with existing tenants, direct relationships with new tenants and broker relationships. These channels are built through current relationships with key members of our acquisitions and asset management teams, partner appreciation events, attendance at critical conferences and conventions and reliable execution.
 
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Evaluating acquisitions.
Each acquisition opportunity is evaluated against our acquisition criteria, which includes, but is not limited to: accretive capitalization rate, long-term lease structure containing rent escalations, favorable tenant industries based on the Spirit Heat Map, favorable Spirit property ranking, attractive tenant credit characteristics and overall portfolio diversification impact. As part of our acquisition strategy, we target tenants that are publicly listed, as we believe those tenants possess certain attractive characteristics, including continual access to capital, generally lower leverage, audited financial statements and governance scrutiny.
 
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While we consider the foregoing when making investments, we have made investments that do not meet one or more of these criteria, and we may make additional investments that do not meet one or more of these criteria if we believe the opportunity is sufficiently attractive. Acquisition opportunities go through a rigorous evaluation process culminating in review and approval by our Investment Committee. The Investment Committee includes representation from the acquisitions, asset management, credit, legal and finance departments.
 
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Evaluating tenant credit.
We believe extensive credit underwriting is important to minimizing tenant financial risk and protecting stockholder value. Our credit department, which is independent from our acquisitions department, underwrites all acquisition, disposition and capital investment opportunities and monitors the financial health of our existing portfolio. We use our underwriting capabilities to identify tenants with attractive credit characteristics and stable operating histories and to dispose of tenants with weakening characteristics.
 
HIGH-QUALITY PORTFOLIO
We believe that portfolio diversification and leases with structures aligned with our business and growth strategies are the cornerstones to managing the inherent risk associated with investing in real estate. The following portfolio qualities help maintain the stability of our rental revenue and maximize our long-term return on our investments:
 
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Diverse and granular portfolio.
We seek to maintain a portfolio that (i) derives no more than 5.0% of its ABR from any single tenant, (ii) derives no more than 2.0% of its ABR from any single property, (iii) is leased to tenants operating in various industries aligned with our Spirit Heat Map and (iv) is located across the U.S. without significant geographic concentration. As of December 31, 2020, our largest single tenant exposure equaled 3.0%, our largest single property exposure equaled 1.4%, our largest industry concentration equaled 7.7%, and our largest geographic concentration by state equaled 11.1%, in each case based on ABR. Our portfolio is also well diversified between investment and
non-investment
grade rated tenants with 51.0% of our ABR from public issuers. See Item 2. “Properties - Our Real Estate Investment Portfolio” for further information on our portfolio composition as of December 31, 2020.
 
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Leases for operationally essential real estate.
We seek to own properties that are operationally essential to our tenants, thereby reducing the risk that the tenant would choose not to renew an expiring lease or reject a lease in bankruptcy.
 
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Leases with contractual rental growth.
We seek leases that contain contractual provisions to increase rental revenue over the term of the lease. Approximately 89.8% of our ABR as of December 31, 2020 is subject to rent escalations which, generally, increase rent at specified dates by: (i) a fixed amount; or (ii) the lesser of (a) 1 to 2 times any increase in the CPI over a specified period, (b) a fixed percentage, or (c) a fixed schedule.
 
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Leases with relatively long terms.
We seek leases with relatively long terms, typically with
non-cancellable
initial terms of 10 to 20 years and tenant renewal options for additional terms with attractive rent escalation provisions. As of December 31, 2020, our weighted average remaining lease term based on ABR was 10.1 years.
 
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Leases with a master lease structure.
Where appropriate, we seek master leases whereby we lease multiple properties to a single tenant on an “all or none” basis. In a master lease structure, a tenant is responsible for a single lease payment relating to the entire portfolio of leased properties, as opposed to separate lease payments relating to each individually leased property. The master lease structure hinders a tenant’s ability to “cherry pick” locations, where it unilaterally gives up underperforming properties while maintaining its leasehold interest in well-performing properties. Approximately 42.0% of our ABR as of December 31, 2020 is subject to a master lease structure.
Since our inception, our occupancy has never fallen below 96.1%, despite the economic downturns of 2008 through 2010 and the
COVID-19
pandemic. While the onset in the U.S. of the
COVID-19
pandemic resulted in requests for relief from a number of our tenants, the majority of these requests came in the form of rent deferrals, and we believe the diversity and strength of our portfolio helped to limit the impact of the
COVID-19
pandemic on our 2020 operating results. Our discussions with tenants requesting relief substantially focused on industries that have been directly disrupted by the
COVID-19
pandemic and restrictions intended to prevent its spread, particularly movie theaters, casual dining restaurants, entertainment, health and fitness, and hotels. For the year ended December 31, 2020, we deferred $31.9 million of rent and abated $6.3 million of rent. For the year ended December 31, 2021, we expect to
 
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see significant reductions in the impact of
COVID-19
and have currently granted additional rent deferrals of $9.2 million and abatements of $1.0 million. The deferral periods range, generally, from one to six months, with an average deferral period of four months and an average repayment period of 12 months. The majority of the relief granted to tenants in 2021 relates to tenants in the movie theater industry. Although we are and will continue to be actively engaged in rent collection efforts related to uncollected rent, as well as working with certain tenants who may request future rent relief, we can provide no assurance that such efforts will be successful, particularly in the event that the
COVID-19
pandemic and restrictions intended to prevent its spread continue for a prolonged period.
 
FORTRESS BALANCE SHEET
Our long-term financing strategy is to maintain a leverage profile that creates operational flexibility and generates superior risk-adjusted returns for our stockholders. We finance our operations and investments using a variety of methods, including available unrestricted cash balances, property operating revenue, proceeds from property dispositions, available borrowings under our credit facilities, common and preferred stock issuances, and debt securities issuances, including mortgage indebtedness and senior unsecured debt. We determine the amount of equity and debt financing to be used when acquiring an asset by evaluating our cost of equity capital, terms available in the credit markets (such as interest rate, repayment provisions and maturity) and our assessment of the particular asset’s risk.
In October 2020, we renewed our shelf registration statement with the SEC, which became immediately effective upon filing and will expire in October 2023, unless renewed before. Under this shelf registration statement, we may offer shares of our common or preferred stock or debt securities in amounts, at prices, and on terms to be announced when, and if, such shares are offered. The specifics of any future offerings, along with the use of proceeds from any such offerings, will be described in detail in a prospectus supplement or other offering materials at the time of such offerings.
 
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Issuance of common stock.
We may issue common stock when we believe that our share price is at a level that allows the offering proceeds to be accretively invested into additional properties, to permanently finance properties that were financed by our credit facilities, or to repay outstanding debt at or before maturity.
 
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Issuance of debt securities.
We have issued senior unsecured debt securities and have obtained other senior unsecured debt at the Operating Partnership level. In addition, our debt historically has also consisted of some long-term borrowings secured by specific real estate assets or, more typically, pools of real estate assets. To the extent practicable, we expect to maintain a well-balanced debt profile with manageable and staggered maturities.
 
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Cash provided by operations.
In addition to cash provided by the issuance of common stock and debt securities, we expect to fund our operating expenses and other short-term liquidity requirements, including property acquisitions, payment of principal and interest on our outstanding indebtedness, property improvements,
re-leasing
costs, and cash distributions to common and preferred stockholders, primarily through cash provided by operating activities and borrowings under our available credit facilities.
We anticipate that we will continue to use a number of different sources to finance our acquisitions and operations going forward; however, we cannot assure you that we will have access to the capital and credit markets at times and at terms that are acceptable to us.
Competition
We face competition for acquisitions from investors, including traded and
non-traded
public REITs, private equity funds and institutional investment funds, some of which have greater financial resources than we do, a greater ability to borrow funds to acquire properties and the ability to accept more risk than we can prudently manage. This competition may increase the demand for the types of properties in which we typically invest and, therefore, reduce the number of suitable acquisition opportunities available to us and increase the prices paid for such. This competition will increase if investments in real estate become more attractive relative to other forms of investment.
As a landlord, we compete in the multi-billion dollar commercial real estate market with numerous developers and owners of properties, many of which own properties similar to ours in the same markets in which our properties are located. In operating and managing our portfolio, we compete for tenants based on a number of factors, including
 
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location, rental rates and flexibility. Some of our competitors have greater economies of scale, have lower cost of capital, have access to more resources, and have greater name recognition than we do. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose our tenants or prospective tenants and we may be pressured to reduce our rental rates or to offer substantial rent abatements, tenant improvement allowances, early termination rights or below-market renewal options in order to retain tenants when our leases expire.
Regulation
GENERAL
Our properties are subject to various covenants, laws, ordinances and regulations, including regulations relating to common areas and fire and safety requirements. We believe that each of our properties has the necessary permits and approvals.
AMERICANS WITH DISABILITIES ACT
Pursuant to the ADA, our properties are required to meet federal requirements related to access and use by persons with disabilities. Compliance with the ADA, as well as a number of additional federal, state and local laws and regulations, may require modifications to properties we currently own and any properties we purchase, or may restrict renovations of those properties. Noncompliance with these laws or regulations could result in fines or an award of damages to private litigants, as well as the incurrence of costs to make modifications to attain compliance. Although our tenants are generally responsible for compliance with the ADA and other similar laws or regulations, we could be held liable as the owner of the property for a failure of one of our tenants to comply with such laws or regulations.
ENVIRONMENTAL MATTERS
Federal, state and local environmental laws and regulations regulate releases of hazardous or toxic substances into the environment. Some of our properties contain, have contained, or are adjacent to or near properties that contain or have contained storage tanks for petroleum products or other hazardous or toxic substances. Similarly, some of our properties are or were used for commercial or industrial purposes that involve or involved the use of hazardous or toxic substances or are adjacent to or near properties that are of have been used for such purposes. Under certain of these laws and regulations, a current or previous owner, operator or tenant may be required to investigate and
clean-up
hazardous or toxic substances or petroleum product releases or threats of releases, and may be held liable to a government entity or third parties for property damage and for investigation,
clean-up
and monitoring costs incurred by those parties in connection with actual or threatened contamination. These laws typically impose
clean-up
responsibility and liability without regard to fault, or whether or not the owner, operator or tenant knew of or caused the contamination. The liability may be joint and several for the full amount of the investigation,
clean-up
and monitoring costs incurred or to be incurred or actions to be undertaken, although a party held jointly and severally liable may seek contributions from other identified, solvent, responsible parties for their fair share toward these costs. In addition, strict environmental laws regulate a variety of activities that can occur on a property, including the storage of petroleum products or other hazardous or toxic substances, air emissions and water discharges. Such laws may impose fines or penalties for violations.
Environmental laws also govern ACM. Federal regulations require building owners and those exercising control over a building’s management to identify and warn, through signs and labels, of potential hazards posed by workplace exposure to ACM in their building. The regulations also have employee training, record keeping and due diligence requirements pertaining to ACM. Significant fines can be assessed for violation of these regulations and we could be subject to lawsuits if personal injury from exposure to ACM occurs. Federal, state and local laws and regulations also govern the removal, encapsulation, disturbance, handling and/or disposal of ACM when those materials are in poor condition or in the event of construction, remodeling, renovation or demolition of a building. These laws may impose liability for improper handling or a release into the environment of ACM and may provide for fines to, and for third parties to seek recovery from, owners or operators of real properties for personal injury or improper work exposure associated with ACM.
In addition, our properties may contain or develop harmful mold or other airborne contaminants. The presence of significant mold or other airborne contaminants at any of our properties could require us to undertake a costly
 
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remediation to contain or remove the mold or other airborne contaminants from the affected property or increase indoor ventilation. Further, the presence of significant mold or other airborne contaminants could expose us to liability from our tenants, employees of our tenants or others if property damage or personal injury occurs.
Before completing an acquisition, we obtain environmental assessments carried out in accordance with the Standard Practice for Environmental Site Assessments as set by ASTM International. These assessments generally include a physical site inspection, a review of relevant federal, state and local environmental and health agency database records, one or more interviews with appropriate site-related personnel, review of the property’s chain of title and review of historical aerial photographs and other information on past uses of the property. These assessments are limited in scope, however, if recommended in the initial assessments, we may undertake additional assessments such as soil and/or groundwater samplings, other limited subsurface investigations and ACM or mold surveys. A prior owner or operator of a property or historic operations at our properties may have created a material environmental condition that is not known to us or the independent consultants preparing the site assessments. Generally, our leases provide that the lessee will indemnify us for any loss or expense we incur as a result of the presence, use or release of hazardous materials on our property. However, if environmental concerns are not satisfactorily resolved in any initial or additional assessments, we may obtain environment insurance policies to insure against potential environmental risk or loss depending on the type of property, the availability and cost of the insurance and various other factors we deem relevant (i.e., an environmental occurrence affects one of our properties where our lessee may not have the financial capability to honor its indemnification obligations to us).
Available Information
Our Annual Report on Form
10-K,
Quarterly Reports on Form
10-Q,
our Current Reports on Form
8-K,
and the Section 16 filings of our directors and officers, as well as any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, are available free of charge on our website www.spiritrealty.com as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Also available on our website, free of charge, are corporate governance documents, including our corporate governance guidelines and our code of business conduct and ethics. We intend to disclose on our website under “Corporate Responsibility—Corporate Governance” any amendment to, or waiver of, any provisions of our code of business conduct and ethics applicable to the directors and/or officers of the Company that would otherwise be required to be disclosed under the rules of the SEC or the NYSE. Information contained on or hyperlinked from our website is not incorporated by reference into, and should not be considered part of, this Annual Report on Form
10-K
or our other filings with the SEC. A copy of this Annual Report on Form
10-K
is also available without charge upon written request to: Investor Relations, Spirit Realty Capital, Inc., 2727 North Harwood Street, Suite 300, Dallas, Texas 75201.
Item 1A. Risk Factors
Set forth below are some (but not all) of the risk factors that could adversely affect our business, financial condition, results of operations, cash flow, liquidity and ability to access the capital markets and satisfy debt service obligations and make distributions to our stockholders (which we refer to collectively as “materially and adversely affecting” us or having “a material adverse effect” on us and comparable phrases) and the market price of our securities. Because we operate in a highly competitive and rapidly changing environment, new risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can management assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
RISKS RELATED TO OUR BUSINESS AND PROPERTIES
Risks related to commercial real estate ownership could reduce the value of our properties.
Our core business is the ownership of retail, industrial and office real estate that is leased to companies on a
triple-net
basis. Accordingly, our performance is subject to risks inherent to the ownership of commercial real estate, including:
   
inability to collect rent from tenants due to financial hardship, including bankruptcy;
   
changes in local real estate markets resulting in the lack of availability or demand for single-tenant retail space;
   
changes in consumer trends and preferences that reduce the demand for products/services of our tenants;
   
inability to lease or sell properties upon expiration or termination of existing leases;
 
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environmental risks related to the presence of hazardous or toxic substances or materials on our properties;
   
subjectivity of real estate valuations and changes in such valuations over time;
   
illiquid nature of real estate compared to most other financial assets;
   
changes in laws and regulations, including those governing real estate usage and zoning;
   
changes in interest rates and the availability of financing; and
   
changes in the general economic and business climate.
The occurrence of any of the risks described above may cause the value of our real estate to decline.
Actual or perceived threats associated with epidemics, pandemics or public health crises, including the ongoing
COVID-19
pandemic, could have a material adverse effect on us.
Epidemics, pandemics or other public health crises, including the ongoing
COVID-19
pandemic, that impact economic and market conditions, particularly in markets where our properties are located, and preventative measures taken to alleviate any public health crises, may have a material adverse effect on us and our tenants, and may affect our ability as a
net-lease
real estate investment trust to acquire properties or lease properties to our tenants, who may be unable, as a result of any economic downturn occasioned by public health crises, to make rental payments when due.
The ongoing
COVID-19
pandemic and restrictions intended to prevent its spread, has had a significant adverse impact on economic and market conditions in the United States and the markets in which we own properties. Certain of our tenants, especially those in industries considered
“non-essential”
under varying state and local
“shelter-in-place”
and
“stay-at-home”
orders and other restrictions on types of business that may continue to operate, have experienced and continue, to experience challenges or even closures as a result of the
COVID-19
pandemic, which has had, and we anticipate will continue to have, a material adverse impact on them. Although some state governments and other authorities were in varying stages of lifting or modifying some of these measures, some have already been forced to, and others may in the future, reinstitute these measures or impose new, more restrictive measures, if the risks, or the perception of the risks, related to the
COVID-19
pandemic worsen at any time.
The ongoing
COVID-19
pandemic has directly resulted, and may continue to result, in a reduction in our rental income and/or an increase in our property costs and impairments. In addition, it has resulted, and may continue to result, in an increase in our general and administrative expenses, as we have incurred and may continue to incur costs to negotiate rent deferrals, lease restructures and/or lease terminations and/or enforce our contractual rights (including through litigation), as we deem appropriate on a
case-by-case
basis. For the year ended December 31, 2020, we deferred $31.9 million of rent and abated $6.3 million of rent. For the year ended December 31, 2021, we have currently granted additional rent deferrals of $9.2 million and abatements of $1.0 million. The deferral periods range generally from one to six months, with an average deferral period of four months and an average repayment period of 12 months. Of the tenants who we have granted rent deferrals, 19% are public companies and the weighted average remaining lease term of leases with deferrals is 10.2 years (based on Base Rent). Although we are and will continue to be actively engaged in rent collection efforts related to uncollected rent, as well as working with certain tenants who have requested rent deferrals, we can provide no assurance that such efforts or our efforts in future periods will be successful.
The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of the
COVID-19
pandemic or restrictions intended to prevent its spread, and we are not able to predict whether other epidemics, pandemics or other public health crises will occur in the future that may have similar impacts. Nevertheless, the ongoing
COVID-19
pandemic and restrictions intended to prevent its spread and the current financial, economic and capital markets environment and future developments in these and other areas present material risks and uncertainties with respect to the adverse impacts on us. Such adverse impacts could depend on, among other factors:
   
the financial condition and viability of our tenants – many of which are in retail industries – and their ability or willingness to pay rent in full on a timely basis;
   
state, local, federal and industry-initiated efforts that may adversely affect landlords, including us, and their ability to collect rent and/or enforce remedies for the failure to pay rent;
   
our need to restructure leases with our tenants and our ability to do so on favorable terms or at all;
   
our ability to renew leases or
re-lease
available space in our properties on favorable terms or at all in the event of nonrenewal or in the event we exercise our right to replace an existing tenant, and obligations we may incur in connection with the replacement of an existing tenant;
 
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a severe and prolonged disruption and instability in the global financial markets may affect our or our tenants’ ability to access capital necessary to fund our respective business operations or retire, replace or renew maturing liabilities on a timely basis, on attractive terms or at all and may adversely affect the valuation of financial assets and liabilities;
   
a refusal or failure of one or more lenders under the 2019 Revolving Credit and Term Loan Agreement to fund their respective financing commitment to us;
   
the broader impact of the severe economic contraction due to the
COVID-19
pandemic and restrictions intended to prevent its spread, the resulting increase in unemployment that has occurred and its effect on consumer behavior, and negative consequences that will occur if these trends are not timely reversed;
   
disruptions in our tenants’ supply chains or delays in the delivery of products, services or other materials necessary for their operations, which could force our tenants’ to reduce, delay or eliminate offerings of their products and services, reduce or eliminate their revenues and liquidity and/or result in their bankruptcy or insolvency;
   
the further utilization of
e-commerce
in certain industries as a result of the temporary closure of many retail properties, which may lead to the closure of underperforming properties by retailers;
   
our and our tenants’ ability to manage our respective businesses to the extent our and their management or personnel (including
on-site
employees) are impacted in significant numbers by the
COVID-19
pandemic and are otherwise not willing, available or allowed to conduct work; and
   
our and our tenants’ ability to ensure business continuity in the event our continuity of operations plan is not effective or improperly implemented or deployed during the
COVID-19
pandemic.
We may be unable to identify and complete acquisitions of suitable properties, which may impede our growth, or our future acquisitions may not yield the returns we expect.
Our ability to expand through acquisitions requires us to identify and complete investment opportunities on favorable terms that are compatible with our growth strategy. Our ability to acquire properties on favorable terms and successfully operate them may be constrained by the following significant risks:
   
competition from other real estate investors, including REITs and institutional investment funds, which may be able to accept more risk, including higher acquisition prices, than we can prudently manage;
   
competition from other real estate investors across our acquisition sourcing channels (including brokers, existing tenant relationships, prospective tenant relationships, etc.) that may significantly reduce our acquisition volume or increase the purchase price for a property we acquire;
   
financing for an acquisition may not be available on favorable terms or at all for potential acquisitions;
   
significant costs and management attention diverted to evaluate and negotiate potential acquisitions, including ones that we may not subsequently complete;
   
acquisition of properties that are not and may not become accretive to our results;
   
cash flow from an acquired property may be insufficient to meet our required principal and interest payments with respect to debt used to finance the acquisition of such property;
   
necessary improvements or renovations to acquired properties may exceed budgeted amounts;
   
market conditions may result in higher than expected vacancy rates and lower than expected rental rates; or
   
properties acquired may be subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities such as
clean-up
of undisclosed environmental contamination or claims by tenants, vendors or other persons dealing with the former owners of the properties.
Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition.
The real estate investments made, and expected to be made, by us are relatively difficult to sell quickly. As a result, our ability to promptly sell one or more of our properties in response to changing economic, financial or investment conditions is limited. We may be unable to dispose of properties by sale, other disposition or refinancing at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy. In particular, these risks could arise from weakness in or even the lack of an established market for a property, changes in the financial condition or prospects of prospective purchasers, changes in national or international economic conditions and changes in laws, regulations or fiscal policies of the jurisdiction in which a property is located.
In addition, the Code imposes restrictions on a REIT’s ability to dispose of properties that are not applicable to other types of real estate companies. In particular, the tax laws applicable to REITs effectively require that we hold our
 
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properties for investment, rather than primarily for sale in the ordinary course of business, which may cause us to forgo or defer sales of properties that otherwise would be in our best interest. Therefore, we may not be able to vary our portfolio in response to economic or other conditions promptly or on favorable terms.
Dispositions of real estate assets could change the holding period assumption in our valuation analyses, which could result in material impairment losses and adversely affect our financial results.
We evaluate real estate assets for impairment based on the projected cash flow of the asset over our anticipated holding period. If we change our intended holding period due to our intention to sell or otherwise dispose of an asset, we must reevaluate whether that asset is impaired under GAAP. Depending on the carrying value of the property at the time we change our intention and the amount that we estimate we would receive on disposal, we may record an impairment loss that would adversely affect our financial results.
In the future, we may choose to acquire properties or portfolios of properties through tax deferred contribution transactions, which could result in stockholder dilution and limit our ability to sell such assets.
In the future we may acquire properties or portfolios of properties through tax deferred contribution transactions in exchange for partnership interests in the Operating Partnership, which may result in stockholder dilution. This acquisition structure may have the effect of, among other things, reducing the amount of tax depreciation we could deduct over the tax life of the acquired properties, and may require that we agree to protect the contributors’ ability to defer recognition of taxable gain through restrictions on our ability to dispose of the acquired properties and/or the allocation of partnership debt to the contributors to maintain their tax bases. These restrictions could limit our ability to sell an asset at a time, or on terms, that would be favorable absent such restrictions.
High geographic concentration of our properties could magnify the effects of adverse economic or regulatory developments in such geographic areas on our operations and financial condition.
As of December 31, 2020, 11.1% of our portfolio (as a percentage of ABR) was located in Texas, representing the highest concentration of our assets. We are susceptible to adverse developments in the economic or regulatory environments of the geographic areas in which we concentrate (or in which we may develop a substantial concentration of assets in the future), such as business layoffs or downsizing, industry slowdowns, relocations of businesses, increases in real estate and other taxes or costs of complying with governmental regulations.
Our tenants may fail to successfully operate their businesses, which could adversely affect us.
The success of our investments is materially dependent on the financial stability of our tenants’ financial condition and leasing practices. At any given time, our tenants may experience a downturn in their business, including as a result of adverse economic conditions, that may weaken the operating results and financial condition of individual properties or of their business as whole. We depend on our tenants to operate the properties we own in a manner which generates revenues sufficient to allow them to meet their obligations to us, including their obligations to pay rent, maintain certain insurance coverage and pay real estate taxes and maintain the properties in a manner so as not to jeopardize their operating licenses or regulatory status. Although our occupied properties are generally essential to the tenant’s generation of sales and profits, this does not guarantee that a tenant’s operations at a particular property will be successful or that the tenant will be able to meet all of its obligations to us. As a result, a tenant may delay lease commencement, decline to extend a lease upon its expiration, fail to make rental payments when due, become insolvent or declare bankruptcy.
Single-tenant leases involve particular and significant risks related to tenant default.
Our strategy focuses primarily on investing in single-tenant
triple-net
leased properties throughout the United States. The financial failure of, or default in payment by, a single tenant under its lease is likely to cause a significant reduction in, or elimination of, our rental revenue from that property and a reduction in the value of the property. We may also experience difficulty or a significant delay in
re-leasing
or selling such property. This risk is magnified in situations where we lease multiple properties to a single tenant under a master lease. The failure or default of a tenant under a master lease could reduce or eliminate rental revenue from multiple properties and reduce the value of such properties. Although the master lease structure may be beneficial to us because it restricts the ability of tenants to individually remove underperforming properties from the portfolio of properties leased from us, there is no guarantee that a tenant will not default in its obligations to us or decline to renew its master lease upon expiration.
 
 
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The bankruptcy or insolvency of any of our tenants could result in the termination of such tenant’s lease and material losses to us.
The bankruptcy or insolvency of any of our tenants could diminish the income we receive from that tenant’s lease or leases. A substantial portion our properties are leased to unrated tenants, which may increase the risk that a tenant bankruptcy or insolvency will occur. If a tenant becomes bankrupt or insolvent, federal law may prohibit us from evicting such tenant based solely upon such bankruptcy or insolvency. In addition, a bankrupt or insolvent tenant may be authorized to reject and terminate its lease or leases with us. Any claims against such bankrupt tenant for unpaid future rent would be subject to statutory limitations that would likely result in our receipt of rental revenues that are substantially less than the contractually specified rent we are owed under the lease or leases. In addition, any claim we have for unpaid past rent, if any, may not be paid in full. We may also be unable to
re-lease
a terminated or rejected space or to
re-lease
it on comparable or more favorable terms.
Moreover, tenants who are considering filing for bankruptcy protection may request amendments of their master leases to remove certain of the properties they lease from us under such master leases. We cannot guarantee that we will be able to sell or
re-lease
such properties or that lease termination fees, if any, received in exchange for such releases will be sufficient to make up for the rental revenues lost as a result of such lease amendments.
We face significant competition for tenants, which may decrease or prevent increases of the occupancy and rental rates of our properties.
We compete with numerous developers, owners and operators of properties, many of which own properties similar to ours in the same markets in which our properties are located. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose existing or potential tenants and we may be pressured to reduce our rental rates or to offer more substantial rent abatements, tenant improvements, early termination rights, below-market renewal options or other lease incentive payments in order to retain tenants when our leases expire. Competition for tenants could decrease or prevent increases of the occupancy and rental rates of our properties.
Decrease in demand for traditional retail and restaurant space may materially and adversely affect us.
As of December 31, 2020, leases representing approximately 30.0% and 12.2% of our ABR were with tenants in traditional retail and restaurant industries, respectively, and we may acquire additional properties in the future leased to traditional retail and restaurant tenants. The market for traditional retail and restaurant space has previously been, and could continue to be, adversely affected by weakness in the national, regional and local economies, the adverse financial condition of some large retail and restaurant companies, the ongoing consolidation in the traditional retail and restaurant industries, the excess amount of traditional retail and restaurant space in a number of markets and, in the case of the traditional retail industry, increasing consumer purchases over the Internet. To the extent that these conditions continue, they are likely to negatively affect market rents for traditional retail and restaurant space.
We may be unable to renew leases, lease vacant space or
re-lease
space as leases expire on favorable terms or at all.
Our results of operations depend on our ability to strategically lease space in our properties (by renewing or
re-leasing
expiring leases and leasing vacant space), optimize our tenant mix or lease properties on more economically favorable terms. As of December 31, 2020, leases representing approximately 2.6% of our ABR will expire during 2021. As of December 31, 2020, seven of our properties, representing approximately 0.4% of our total properties, were vacant. Current tenants may decline, or may not have the financial resources available, to renew current leases and we cannot guarantee that leases that are renewed will have terms that are as economically favorable to us as the expiring lease terms. If tenants do not renew the leases as they expire, we will have to find new tenants to lease our properties and there is no guarantee that we will be able to find new tenants or that our properties will be
re-leased
at rental rates equal to or above the current average rental rates or that substantial rent abatements, tenant improvement allowances, early termination rights, below-market renewal options or other lease incentive payments will not be offered to attract new tenants. Many of the leases we enter into or acquire are for properties that are specially suited to the particular business of our tenants. Because these properties have been designed or physically modified for a particular tenant, in addition to increasing the difficulties described above associated with releasing such space, in the event we are required to sell the property, we may have difficulty selling it to a party other than the tenant due to the special purpose for which the property may have been designed or modified. This potential illiquidity
 
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may limit our ability to quickly modify our portfolio in response to changes in economic or other conditions, including tenant demand. We may experience significant costs in connection with renewing, leasing or
re-leasing
a significant number of our properties.
Our ability to realize future rent increases will vary depending on changes in the CPI.
As of December 31, 2020, approximately 17.5% of our ABR is subject to rent escalators which increase rent by a multiple of any increases in the CPI or the lesser of (a) 1 to 2 times any increase in the CPI over a specified period, (b) a fixed percentage, or (c) a fixed schedule. If the product of any increase in the CPI multiplied by the applicable factor is less than the fixed percentage, the increased rent we are entitled to receive will be less than what we otherwise would have been entitled to receive if the rent escalator was based solely on a fixed percentage. Therefore, during periods of low inflation or deflation, small increases or decreases in the CPI subject us to the risk of receiving lower rental revenue than we otherwise would have been entitled to receive if our rent escalators were based solely on fixed percentages or amounts. Conversely, if the product of any increase in the CPI multiplied by the applicable factor is more than the fixed percentage, the increased rent we are entitled to receive will be less than what we otherwise would have been entitled to receive if the rent escalator was based solely on an increase in CPI. Therefore, periods of high inflation subject us to the risk of receiving lower rental revenue than we otherwise would have been entitled to receive if our rent escalators were based solely on CPI increases.
We may be vulnerable to security breaches or cyber-attacks which could disrupt our operations and have a material adverse effect on our financial performance and operating results.
Security breaches, cyber-attacks, or disruption, of our or our third-party service providers’ physical or information technology infrastructure, networks and related management systems could result in, among other things, a breach of our networks and information technology infrastructure, the misappropriation of our or our tenants’ proprietary or confidential information, interruptions or malfunctions in our or our tenants’ operations, delays or interruptions to our ability to meet tenant needs, breach of our legal, regulatory or contractual obligations, inability to access or rely upon critical business records, unauthorized access to our facilities or other disruptions in our operations. Numerous sources can cause these types of incidents, including: physical or electronic security breaches; viruses, ransomware or other malware; hardware vulnerabilities such as Meltdown and Spectre; accident or human error by our own personnel or third parties; criminal activity or malfeasance (including by our own personnel); fraud or impersonation scams perpetrated against us or our partners or tenants; or security events impacting our third-party service providers or our partners or tenants. Our exposure to cybersecurity threats and negative consequences of cybersecurity breaches will likely increase as we store an increasing amount of tenant data.
We recognize the increasing volume of cyber-attacks and employ commercially practical efforts to provide reasonable assurance such attacks are appropriately mitigated. We may be required to expend significant financial resources to protect against or respond to such breaches. Techniques used to breach security change frequently and are generally not recognized until launched against a target, so we may not be able to promptly detect that a security breach or unauthorized access has occurred. We also may not be able to implement security measures in a timely manner or, if and when implemented, we may not be able to determine the extent to which these measures could be circumvented. As we provide assurances to our tenants that we provide a high level of security, if an actual or perceived security breach occurs, the market’s perception of our security measures could be harmed and we could lose current and potential tenants, and such a breach could be harmful to our brand and reputation. Any breaches that may occur could expose us to increased risk of lawsuits, material monetary damages, potential violations of applicable privacy and other laws, penalties and fines, harm to our reputation and increases in our security and insurance costs. In the event of a breach resulting in loss of data, such as personally identifiable information or other such data protected by data privacy or other laws, we may be liable for damages, fines and penalties for such losses under applicable regulatory frameworks despite not handling the data. We cannot guarantee that any backup systems, regular data backups, security protocols, network protection mechanisms and other procedures currently in place, or that may be in place in the future, will be adequate to prevent network and service interruption, system failure, damage to one or more of our systems or data loss in the event of a security breach or attack.
In addition, the regulatory framework around data custody, data privacy and breaches varies by jurisdiction and is an evolving area of law with increasingly complex and rigorous regulatory standards enacted to protect business and personal data in the United States. We may not be able to limit our liability or damages in the event of such a loss. Data protection legislation is becoming increasingly common in the United States at both the federal and state level and may require us to further modify our data processing practices and policies. For example, the California
 
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Consumer Privacy Act of 2018, which took effect on January 1, 2020 and is expected to provide California residents with increased privacy rights and protections with respect to their personal information. Compliance with existing, proposed and recently enacted laws and regulations can be costly; any failure to comply with these regulatory standards could subject us to legal and reputational risks. Misuse of or failure to secure personal information could also result in violation of data privacy laws and regulations, proceedings against the Company by governmental entities or others, fines and penalties, or damage to our reputation and credibility.
Inflation may materially and adversely affect us and our tenants.
Increased inflation could have a negative impact on variable-rate debt we currently have or that we may incur in the future. Our leases typically contain provisions designed to mitigate the adverse impact of inflation on our results of operations. Because tenants are typically required to pay all property operating expenses, increases in property-level expenses at our leased properties generally do not affect us. However, increased operating expenses at vacant properties and the limited number of properties that are not subject to full
triple-net
leases could cause us to incur additional operating expenses, which could increase our exposure to inflation. Additionally, the increases in rent provided by many of our leases may not keep up with the rate of inflation. Increased costs may also have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue, which may adversely affect the tenants’ ability to pay rent owed to us.
The market price and trading volume of shares of our common stock may fluctuate or decline.
The market price and trading volume of our common stock may fluctuate widely due to various factors, including:
   
broad market fluctuations unrelated to our or our competitors’ operating performances;
   
actual or anticipated variations in our or our competitors’ quarterly operating results or distributions;
   
publication of research reports about us, our competitors or the real estate industry;
   
market reaction to any additional indebtedness we incur or debt or equity securities we issue in the future;
   
additions or departures of key management personnel;
   
changes in our credit ratings;
   
the financial condition, performance and prospects of our tenants;
   
changes in market interest rates in comparison to the distribution yield on shares of our common stock; and
   
the realization of any of the other risk factors presented in this Annual Report on Form
10-K.
We may issue shares of our common stock or other securities without stockholder approval, including shares issued to satisfy REIT distribution requirements. The Operating Partnership may issue partnership interests to third parties, and such partnership interests would be exchangeable for cash or, at our election, shares of our common stock at specified ratios set when partnership interests in the Operating Partnership are issued. Our existing stockholders have no preemptive rights to acquire any of these securities, and any issuance of equity securities by us or the Operating Partnership may dilute stockholder investment.
If we fail to maintain effective internal controls over financial reporting, we may not be able to accurately and timely report our financial results.
Effective internal controls over financial reporting are necessary for us to provide reliable financial reports, effectively prevent fraud and operate successfully as a public company. We are required to perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on, and our independent registered public accounting firm to attest to, the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002.
Any failure to maintain effective controls or timely effect any necessary improvement of our internal control over financial reporting controls could harm operating results or cause us to fail to meet our reporting obligations, which could affect the listing of our common stock on the NYSE. Ineffective internal control over financial reporting and disclosure controls could also cause investors to lose confidence in our reported financial information, which would likely have a negative effect on the per share trading price of our common stock.
Loss of our key personnel could materially impair our ability to operate successfully.
Our continued success and our ability to manage anticipated future growth depend, in large part, upon the efforts of key personnel, particularly our President and Chief Executive Officer, Jackson Hsieh, who has extensive market knowledge and relationships and exercises substantial influence over our operational, financing, acquisition and
 
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disposition activity. Many of our other key executive personnel, particularly our executive and senior vice presidents, also have extensive experience and strong reputations in the real estate industry and have been instrumental in setting our strategic direction, operating our business, identifying, recruiting and training key personnel and arranging necessary financing. In particular, the extent and nature of the relationships that these individuals have developed with financial institutions and existing and prospective tenants is critically important to the success of our business. The loss of services of one or more members of our senior management team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and weaken our relationships with lenders, business partners, existing and prospective tenants and industry personnel, which could materially and adversely affect us.
Costs of compliance with, or liabilities related to, environmental laws may materially and adversely affect us.
The properties we own or have owned in the past may subject us to known and unknown environmental liabilities. Under various federal, state and local laws and regulations relating to the environment, as a current or former owner or operator of real property, we may be liable for costs and damages, which may be substantial, resulting from the presence or discharge of hazardous or toxic substances, waste or petroleum products at, on, in, under or migrating from such property, including costs to investigate, clean up such contamination and liability for harm to natural resources. We may face liability regardless of:
•  our knowledge of the contamination;
•  the timing of the contamination;
 
•  the cause of the contamination; or
•  the party responsible for the contamination of the property.
The presence of hazardous substances on a property may adversely affect our ability to sell, lease or improve the property or to borrow using the property as collateral. In addition, environmental laws may create liens on contaminated properties in favor of the government for damages and costs it incurs to address such contamination. Moreover, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which they may be used or businesses may be operated, and these restrictions may require substantial expenditures.
Although we may obtain insurance for environmental liability for certain properties that are deemed to warrant coverage, our insurance may be insufficient to address any particular environmental situation and we may be unable to continue to obtain insurance for environmental matters, at a reasonable cost or at all, in the future. If our environmental liability insurance is inadequate, we may become subject to material losses for environmental liabilities. Our ability to receive the benefits of any environmental liability insurance policy will depend on the financial stability of our insurance company and the position it takes with respect to our insurance policies.
Insurance on our properties may not cover all losses, which could materially and adversely affect us.
Our tenants are required to maintain liability and property insurance coverage for the properties they lease from us pursuant to
triple-net
leases. Pursuant to such leases, our tenants are generally required to name us (and any of our lenders that have a mortgage on the property leased by the tenant) as additional insureds on their liability policies and additional insured and/or loss payee (or mortgagee, in the case of our lenders) on their property policies. All tenants are required to maintain casualty coverage and most carry limits at 100% of replacement cost. Depending on the location of the property, losses of a catastrophic nature, such as those caused by earthquakes and floods, may be covered by insurance policies that are held by our tenant with limitations such as large deductibles or
co-payments
that a tenant may not be able to meet. In addition, losses of a catastrophic nature, such as those caused by wind/hail, hurricanes, terrorism or acts of war, may be uninsurable or not economically insurable. In the event there is damage to our properties that is not covered by insurance and such properties are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged.
Inflation, changes in building codes and ordinances, environmental considerations, and other factors, including terrorism or acts of war, may make any insurance proceeds we receive insufficient to repair or replace a property if it is damaged or destroyed. In that situation, the insurance proceeds received may not be adequate to restore our economic position with respect to the affected real property. Furthermore, in the event we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing specifications without significant capital expenditures which may exceed any amounts received pursuant to insurance policies, as reconstruction or improvement of such a property would likely require significant upgrades to meet zoning and building code requirements. The loss of our capital investment in or anticipated future returns from our properties due to material uninsured losses could materially and adversely affect us.
 
 
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Compliance with the ADA and fire, safety and other regulations may require us to make unanticipated expenditures that materially and adversely affect us.
Our properties are subject to the ADA, fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental agencies and bodies and become applicable to our properties. While our tenants are obligated by law to comply with the ADA and typically obligated under our leases and financing agreements to cover costs associated with compliance, if required changes involve greater expenditures than anticipated or if the changes must be made on a more accelerated basis than anticipated, our tenants’ ability to cover the costs could be adversely affected. We may be required to expend our own funds to comply with the provisions of the ADA. We may be required to make substantial capital expenditures to comply with these requirements and may be required to obtain approvals from various authorities with respect to our properties, including prior to acquiring a property or when undertaking renovations of any of our existing properties. Additionally, failure to comply with any of these requirements could result in the imposition of fines by governmental authorities or awards of damages to private litigants. While we intend to only acquire properties that we believe are currently in substantial compliance with all regulatory requirements, these requirements may change and new requirements may be imposed which would require significant unanticipated expenditures by us.
RISKS RELATED TO OUR CAPITAL STRUCTURE
Our growth depends on external sources of capital that are outside of our control and may not be available to us on commercially reasonable terms or at all.
To maintain our qualification as a REIT, we are required to distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we are subject to federal corporate income tax to the extent that we distribute less than 100% of our REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gain. Because of these distribution requirements, we may not be able to fund future capital needs, including acquisition financing, from operating cash flow and may have to rely on third-party sources. We may not be able to obtain the financing on favorable terms or at all. Any additional debt we incur will increase our leverage and likelihood of default. Our access to third-party sources of capital depends, in part, on:
   
general market conditions;
   
the market’s perception of our growth potential;
   
our current debt levels;
   
our current and expected future earnings;
   
our cash flow and cash distributions; and
   
the market price per share of our common stock.
 
If we cannot obtain capital from third-party sources, we may not be able to acquire properties when strategic opportunities exist, meet the capital and operating needs of our existing properties, satisfy our debt service obligations or make the cash distributions to our stockholders necessary to maintain our qualification as a REIT.
In recent history, we have raised a significant amount of debt through senior unsecured debt securities. We have generally used the proceeds from these financings to repay debt and fund real estate acquisitions. No assurance can be given that we will have access to the capital markets in the future at times and on terms that are acceptable to us, whether to refinance existing debt or to raise additional debt capital.
We have significant indebtedness outstanding, which may expose us to risk of default under our debt obligations, limit our ability to obtain additional financing or affect the market price of our common stock or debt securities.
As of December 31, 2020, the total principal balance outstanding on our indebtedness was approximately $2.5 billion, of which the $178.0 million outstanding under the 2020 Term Loan Agreement incurs interest at a variable rate. We may also incur significant additional debt to finance future investment activities. Payments of principal and interest on borrowings may leave us with insufficient cash resources to meet our cash needs or make the distributions to our common stockholders necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:
   
our cash flow may be insufficient to meet our required principal and interest payments;
   
cash interest expense and financial covenants relating to our indebtedness may limit or eliminate our ability to make distributions to our common stockholders;
   
we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to capitalize upon acquisition opportunities or meet operational needs;
 
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we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;
   
increases in interest rates could increase our interest expense for our variable interest rate debt;
   
we may be unable to hedge floating rate debt, counterparties may fail to honor their obligations under any hedge agreements we enter into, such agreements may not effectively hedge interest rate fluctuation risk, and, upon the expiration of any hedge agreements we enter into, we would be exposed to then-existing market rates of interest and future interest rate volatility;
   
we may be forced to dispose of properties, possibly on unfavorable terms or in violation of certain covenants to which we may be subject;
   
we may default on our obligations and the lenders may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;
   
we may be restricted from accessing some of our excess cash flow after debt service if certain of our tenants fail to meet certain financial performance metric thresholds;
   
we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and
   
our default under any loan with cross-default provisions could result in a default on other indebtedness.
Changes in our leverage ratios may also negatively impact the market price of our equity or debt securities. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, which could hinder our ability to meet the REIT distribution requirements imposed by the Code.
The agreements governing our indebtedness contain restrictions and covenants which may limit our ability to enter into or obtain funding for certain transactions, operate our business or make distributions to our preferred and common stockholders.
The agreements governing our indebtedness contain restrictions and covenants that limit or will limit our ability to operate our business. These covenants, as well as any additional covenants to which we may be subject in the future because of additional indebtedness, could cause us to forgo investment opportunities, reduce or eliminate distributions to our preferred and common stockholders or obtain financing that is more expensive than financing we could obtain if we were not subject to the covenants. In addition, the agreements may have cross-default provisions, which provide that a default under one of our financing agreements would lead to a default on some or all of our debt financing agreements. The covenants and other restrictions under our debt agreements affect, among other things, our ability to:
   
incur indebtedness;
   
create liens on assets;
   
sell or substitute assets;
   
modify certain terms of our leases;
   
prepay debt with higher interest rates;
   
manage our cash flows; and
   
make distributions to equity holders.
 
Additionally, these restrictions may adversely affect our operating and financial flexibility and may limit our ability to respond to changes in our business or competitive environment, all of which may materially and adversely affect us.
Current market conditions could adversely affect our ability to refinance existing indebtedness or obtain additional financing for growth on acceptable terms or at all.
The credit markets can experience significant price volatility, displacement and liquidity disruptions, including the bankruptcy, insolvency or restructuring of certain financial institutions. These circumstances could materially impact liquidity in the financial markets, making financing terms for borrowers less attractive, and in certain cases, result in the unavailability of various types of debt financing. As a result, we may be unable to obtain debt financing on favorable terms or at all or fully refinance maturing indebtedness with new indebtedness. We primarily use external financing to fund acquisitions and to refinance indebtedness as it matures. Reductions in our available borrowing capacity or inability to obtain credit when required or when business conditions warrant could materially and adversely affect us, and we could be forced to limit our acquisition activity and/or take other actions to fund our business activities and repayment of debt, such as selling assets.
Furthermore, if prevailing interest rates or other factors at the time of refinancing result in higher interest rates upon refinancing, then the interest expense relating to that refinanced indebtedness would increase. Higher interest rates on newly incurred debt may negatively impact our acquisition yields, earnings per share and cash flow as well. If interest rates increase, our interest costs and overall costs of capital will increase, which could materially and adversely affect us. Total debt service, including scheduled principal maturities and interest, for 2021 and 2022 is $280.7 million and $87.7 million, respectively. Debt service includes the final balloon repayment of $190.4 million for the 2021 Notes in 2021.
 
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Changes in market interest rates may adversely impact our variable debt expenses.
The 2019 Credit Facility incurs interest at a variable rate using LIBOR and, as such, our interest expense will increase with increases in LIBOR. Further, in 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR after 2021. If LIBOR ceases to exist after 2021, a comparable or successor reference rate as approved under the 2019 Revolving Credit and Term Loan Agreement will apply or such other reference rate as may be agreed by the Company and the lenders under the respective agreements will apply. To the extent these interest rates are less favorable than LIBOR, our interest expense will increase.
Some of our financing arrangements involve balloon payment obligations.
Some of our financings require us to make a
lump-sum
or “balloon” payment at maturity, including $190.4 million in 2021. Our ability to make any balloon payment is uncertain and may depend on our ability to obtain additional financing or our ability to sell our properties. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell our properties at a price sufficient to make the balloon payment, if at all. If the balloon payment is refinanced at a higher rate, it will reduce or eliminate any income from our properties. In addition, if we are unable to refinance these maturities or otherwise retire the indebtedness, we could be forced to relinquish the related collateral.
RISKS RELATED TO OUR ORGANIZATIONAL STRUCTURE
Our charter and bylaws and Maryland law contain provisions that may delay, defer or prevent a change of control transaction, even if such a change in control may be in the interest of our stockholders.
Our charter contains certain restrictions on ownership and transfer of our stock.
Our charter contains various provisions that are intended to preserve our qualification as a REIT and, subject to certain exceptions, authorize our directors to take such actions as are necessary or appropriate to preserve our qualification as a REIT. For example, our charter prohibits the actual, beneficial or constructive ownership by any person of more than 9.8% in value or number of shares, whichever is more restrictive, of the outstanding shares of our common stock or more than 9.8% in value of the aggregate of the outstanding shares of all classes and series of our stock. Our Board of Directors, in its sole and absolute discretion, may exempt a person, prospectively or retroactively, from these ownership limits if certain conditions are satisfied. The restrictions on ownership and transfer of our stock may:
   
discourage a tender offer or other transactions or a change in management or of control that might involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interests; or
   
result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of a charitable beneficiary and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares.
We could increase the number of authorized shares of stock, classify and reclassify
un-issued
stock and issue stock without stockholder approval
. Our Board of Directors, without stockholder approval, has the power under our charter to amend our charter to increase the aggregate number of shares of stock or the number of shares of stock of any class or series that we are authorized to issue, to authorize us to issue authorized but
un-issued
shares of our common stock or preferred stock and to classify or reclassify any
un-issued
shares of our common stock or preferred stock into one or more classes or series of stock and to set the terms of such newly classified or reclassified shares. As a result, we may issue one or more series or classes of common stock or preferred stock with preferences, dividends, powers and rights, voting or otherwise, that are senior to, or otherwise conflict with, the rights of our common stockholders. Although our Board of Directors has no such intention at the present time, it could establish a class or series of common stock or preferred stock that could, depending on the terms of such series, delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.
Certain provisions of Maryland law could inhibit changes in control, which may discourage third parties from conducting a tender offer or seeking other change of control transactions that could involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interest.
Certain provisions of the MGCL may have the effect of inhibiting a third party from making a proposal to acquire us or of impeding a change of control under circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then-prevailing market price of such shares, including:
   
“business combination” provisions that, subject to certain limitations, prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10% or
 
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more of the voting power of our shares or of an affiliate of ours or an affiliate or associate of ours who was the beneficial owner, directly or indirectly, of 10% or more of the voting power of our then outstanding voting stock at any time within a
two-year
period immediately prior to the date in question) or any affiliate of an interested stockholder for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter impose fair price and/or super-majority and stockholder voting requirements on these combinations; and
   
“control share” provisions that provide that a holder of “control shares” of our Company (defined as shares that, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of outstanding “control shares”) has no voting rights with respect to those shares except to the extent approved by our stockholders by the affirmative vote of at least
two-thirds
of all the votes entitled to be cast on the matter, excluding all interested shares.
As permitted by the MGCL, we have elected, by resolution of our Board of Directors, to opt out of the business combination provisions of the MGCL and, pursuant to a provision in our bylaws, to exempt any acquisition of our stock from the control share provisions of the MGCL. However, our Board of Directors may by resolution elect to repeal the exemption from the business combination provisions of the MGCL and may by amendment to our bylaws opt into the control share provisions of the MGCL at any time in the future, whether before or after an acquisition of control shares.
Certain provisions of the MGCL set forth in Title 3, Subtitle 8 of the MGCL (“Subtitle 8”) permit our Board of Directors, without stockholder approval and regardless of what is currently provided in our charter or bylaws, to implement certain corporate governance provisions, some of which (for example, a classified board) are not currently applicable to us. These provisions may have the effect of limiting or precluding a third party from making an unsolicited acquisition proposal for us or of delaying, deferring or preventing a change in control of us under circumstances that otherwise could be in the best interests of our stockholders. Our charter contains a provision whereby we have elected, at such time as we became eligible to do so, to be subject to the provisions of Subtitle 8 relating to the filling of vacancies on our Board of Directors only by the remaining directors. Our Board of Directors has adopted a resolution prohibiting us from electing to be subject to the provisions of Subtitle 8 relating to a classified board unless such election is first approved by our stockholders by the affirmative vote of a majority of all the votes entitled to be cast on the matter.
Our rights and the rights of our stockholders to take action against our directors and officers are limited.
As permitted by Maryland law, our charter limits the liability of our directors and officers to us and our stockholders for money damages, except for liability resulting from:
   
actual receipt of an improper benefit or profit in money, property or services; or
   
active and deliberate dishonesty by the director or officer that was established by a final judgment as being material to the cause of action adjudicated.
As a result, we and our stockholders have rights against our directors and officers that are more limited than might otherwise exist. Accordingly, in the event that actions taken by any of our directors or officers impede the performance of our company, our stockholders’ and our ability to recover damages from such director or officer may be limited. In addition, our charter authorizes us to obligate our company, and our bylaws require us, to indemnify our directors and officers for actions taken by them in those and certain other capacities to the maximum extent permitted by Maryland law.
RISKS RELATED TO TAXES AND OUR STATUS AS A REIT
Failure to qualify as a REIT would materially and adversely affect us and the value of our common stock.
We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2005 and we intend to continue operating in such a manner. We have not requested and do not plan to request a ruling from the IRS that we qualify as a REIT and the statements in this Annual Report on Form
10-K
are not binding on the IRS or any court. Therefore, we cannot guarantee that we have qualified as a REIT or that we will remain qualified as such in the future. If we lose our REIT status, we will face significant tax consequences that would substantially reduce our cash available for distribution to our stockholders for each of the years involved because:
   
we would not be allowed a deduction for distributions to stockholders in computing our taxable income and would be subject to regular U.S. federal corporate income tax;
 
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we could be subject to the federal alternative minimum tax for tax years prior to 2018 and increased state and local taxes; and
   
unless we are entitled to relief under applicable statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified.
Any such corporate tax liability could be substantial and would reduce our cash available for, among other things, our operations and distributions to stockholders. In addition, if we fail to qualify as a REIT, we will not be required to make distributions to our stockholders. As a result of all these factors, our failure to qualify as a REIT also could impair our ability to expand our business and raise capital, and could materially and adversely affect the trading price of our common stock.
Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. In order to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the ownership of our stock, requirements regarding the composition of our assets and requirements regarding the sources of our income. Also, we must make distributions to stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains.
In addition, legislation, new regulations, administrative interpretations or court decisions may materially and adversely affect our investors, our ability to qualify as a REIT for federal income tax purposes or the desirability of an investment in a REIT relative to other investments.
Even if we qualify as a REIT for federal income tax purposes, we may be subject to some federal, state and local income, property and excise taxes on our income or property and, in certain cases, a 100% penalty tax, in the event we sell property as a dealer. In addition, our TRSs will be subject to income tax as regular corporations in the jurisdictions in which they operate.
If SMTA failed to qualify as a REIT, we could cease to qualify as a REIT and suffer other adverse consequences.
If SMTA failed to qualify as a REIT for any taxable year, such failure to qualify as a REIT could adversely affect our ability to qualify as a REIT. If SMTA failed to qualify as a REIT during the year of the
Spin-Off,
the income recognized by us in connection with the
Spin-Off
would not have constituted qualifying income for purposes of the 75% gross income test, which could have adversely affected our ability to qualify as a REIT for such year. In addition, if SMTA failed to qualify as a REIT for any period, the SMTA Preferred Stock would not have qualified as a real estate asset for purposes of the REIT asset tests or produced qualifying income for purposes of the REIT 75% gross income test for such period. In such case, our ownership of the SMTA Preferred Stock during such period could adversely affect our ability to qualify as a REIT, unless we are entitled to relief under an applicable cure provision.
If the Operating Partnership fails to qualify as a partnership for federal income tax purposes, we would cease to qualify as a REIT and suffer other adverse consequences.
We believe the Operating Partnership is currently treated as a partnership for federal income tax purposes. As a partnership, the Operating Partnership is not subject to federal income tax on its income. Instead, each of its partners, including us, is allocated, and may be required to pay tax with respect to, such partner’s share of its income. We cannot assure you that the IRS will not challenge the status of the Operating Partnership or any other subsidiary partnership or limited liability company in which we own an interest as a disregarded entity or partnership for federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were successful in treating the Operating Partnership or any such other subsidiary partnership or limited liability company as an entity taxable as a corporation for federal income tax purposes, we would fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, we would likely cease to qualify as a REIT. Also, the failure of the Operating Partnership or any subsidiary partnerships or limited liability company to qualify as a disregarded entity or partnership for applicable income tax purposes could cause it to become subject to federal and state corporate income tax, which would reduce significantly the amount of cash available for debt service and for distribution to its partners or members, including us.
 
 
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Our ownership of TRSs is subject to certain restrictions, and we will be required to pay a 100% penalty tax on certain income or deductions if our transactions with our TRSs are not conducted on
arm’s-length
terms.
We own securities in TRSs and may acquire securities in additional TRSs in the future. If a TRS owns more than 35% of the total voting power or value of the outstanding securities of another corporation, such other corporation will also be treated as a TRS. Other than some activities relating to lodging and health care facilities, a TRS may generally engage in any business, including the provision of customary or
non-customary
services to tenants of its parent REIT. A TRS is subject to federal income tax as a regular C corporation. In addition, a 100% excise tax will be imposed on certain transactions between a TRS and its parent REIT that are not conducted on an
arm’s-length
basis.
A REIT’s ownership of securities of a TRS is not subject to the 5% or 10% asset tests applicable to REITs. Not more than 25% of the value of our total assets may be represented by securities (including securities of TRSs), other than those securities includable in the 75% asset test, and not more than 20% of the value of our total assets may be represented by securities of TRSs. We anticipate that the aggregate value of the stock and securities of any TRS and other nonqualifying assets that we own will be less than 25% (or 20%, as applicable) of the value of our total assets, and we will monitor the value of these investments to ensure compliance with applicable ownership limitations. In addition, we intend to structure our transactions with any TRSs that we own to ensure that they are entered into on
arm’s-length
terms to avoid incurring the 100% excise tax described above. There can be no assurance, however, that we will be able to comply with the above limitations or to avoid application of the 100% excise tax.
The IRS may treat sale-leaseback transactions as loans, which could jeopardize our REIT status or require us to make an unexpected distribution.
The IRS may take the position that specific sale-leaseback transactions that we treat as leases are not true leases for federal income tax purposes but are, instead, financing arrangements or loans. If a sale-leaseback transaction were so
re-characterized,
we might fail to satisfy the REIT asset tests, the income tests or distribution requirements and consequently lose our REIT status effective with the year of
re-characterization
unless we elect to make an additional distribution to maintain our REIT status. The primary risk relates to our loss of previously incurred depreciation expenses, which could affect the calculation of our REIT taxable income and could cause us to fail the REIT distribution test that requires a REIT to distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In this circumstance, we may elect to distribute an additional dividend of the increased taxable income so as not to fail the REIT distribution test. This distribution would be paid to all stockholders at the time of declaration rather than the stockholders existing in the taxable year affected by the
re-characterization.
We may be forced to borrow funds to maintain our REIT status, and the unavailability of such capital on favorable terms at the desired times, or at all, may cause us to curtail our investment activities and/or to dispose of assets at inopportune times, which could materially and adversely affect us.
To qualify as a REIT, we generally must distribute to our stockholders at least 90% of our REIT taxable income each year, determined without regard to the dividends paid deduction and excluding any net capital gains, and we will be subject to regular corporate income taxes on our undistributed taxable income to the extent that we distribute less than 100% of our REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gains, each year. In addition, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. In order to maintain our REIT status and avoid the payment of income and excise taxes, we may need to borrow funds to meet the REIT distribution requirements even if the then prevailing market conditions are not favorable for these borrowings. These borrowing needs could result from, among other things, differences in timing between the actual receipt of cash and recognition of income for federal income tax purposes, or the effect of
non-deductible
capital expenditures, the creation of reserves or required debt or amortization payments. These sources, however, may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of factors, including the market’s perception of our growth potential, our current debt levels, the market price of our common stock, and our current and potential future earnings. We cannot assure you that we will have access to such capital on favorable terms at the desired times, or at all, which may cause us to curtail our investment activities and/or to dispose of assets at inopportune times, and could materially and adversely affect our financial condition, results of operations, cash flow, cash available for distributions to our stockholders, and per share trading price of our common stock.
 
 
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Dividends payable by REITs generally do not qualify for the reduced tax rates available for some dividends, which may negatively affect the value of our shares.
Dividends treated as “qualified dividend income” payable to U.S. stockholders that are individuals, trusts and estates are generally subject to tax at preferential rates, currently at a maximum federal rate of 20%. Dividends payable by REITs, however, generally are not eligible for the preferential tax rates applicable to qualified dividend income. Under the 2017 Tax Legislation, however, U.S. stockholders that are individuals, trusts and estates generally may deduct up to 20% of the ordinary dividends (e.g., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning after December 31, 2017 and before January 1, 2026. Although this deduction reduces the effective tax rate applicable to certain dividends paid by REITs (generally to 29.6% assuming the shareholder is subject to the 37% maximum rate), such tax rate is still higher than the tax rate applicable to corporate dividends that constitute qualified dividend income. Accordingly, investors who are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of
non-REIT
corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our common stock.
The tax imposed on REITs engaging in “prohibited transactions” may limit our ability to engage in transactions which would be treated as sales for federal income tax purposes.
A REIT’s net income from prohibited transactions is subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, unless a sale or disposition qualifies under certain statutory safe harbors, such characterization is a factual determination and no guarantee can be given that the IRS would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors.
Complying with REIT requirements may affect our profitability and may force us to liquidate or forgo otherwise attractive investments.
To qualify as a REIT, we must continually satisfy tests concerning, among other things, the nature and diversification of our assets, the sources of our income and the amounts we distribute to our stockholders. We may be required to liquidate or forgo otherwise attractive investments in order to satisfy the asset and income tests or to qualify under certain statutory relief provisions. We also may be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. As a result, having to comply with the distribution requirement could cause us to: (1) sell assets in adverse market conditions; (2) borrow on unfavorable terms; or (3) distribute amounts that would otherwise be invested in future acquisitions, capital expenditures or repayment of debt. Accordingly, satisfying the REIT requirements could materially and adversely affect us. Moreover, if we are compelled to liquidate our investments to meet any of these asset, income or distribution tests, or to repay obligations to our lenders, we may be unable to comply with one or more of the requirements applicable to REITs or may be subject to a 100% tax on any resulting gain if such sales constitute prohibited transactions.
If we acquire C corporations in carry-over basis transactions, we may inherit material tax liabilities and other tax attributes from such acquired corporations, and we may be required to distribute earnings and profits.
From time to time, we have and may continue to acquire C corporations in transactions in which the basis of the corporations’ assets in our hands is determined by reference to the basis of the assets in the hands of the acquired corporations, or carry-over basis transactions.
If we acquire any asset from a corporation that is or has been a C corporation in a carry-over basis transaction, and we subsequently recognize gain on the disposition of the asset during the five-year period beginning on the date on which we acquired the asset, then we will be required to pay tax at the regular corporate tax rate on this gain to the extent of the excess of (1) the fair market value of the asset over (2) our adjusted basis in the asset, in each case determined as of the date on which we acquired the asset. Any taxes we pay as a result of such gain would reduce the amount available for distribution to our stockholders. The imposition of such tax may require us to forgo an otherwise attractive disposition of any assets we acquire from a C corporation in a carry-over basis transaction, and as a result may reduce the liquidity of our portfolio of investments. In addition, in such a carry-over basis transaction, we will succeed to any tax liabilities and earnings and profits of the acquired C corporation. To qualify as a REIT, we must distribute any
non-REIT
earnings and profits by the close of the taxable year in which such transaction occurs. Any adjustments to the acquired
 
27

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corporation’s income for taxable years ending on or before the date of the transaction, including as a result of an examination of the corporation’s tax returns by the IRS, could affect the calculation of the corporation’s earnings and profits. If the IRS were to determine that we acquired
non-REIT
earnings and profits from a corporation that we failed to distribute prior to the end of the taxable year in which the carry-over basis transaction occurred, we could avoid disqualification as a REIT by paying a “deficiency dividend.” Under these procedures, we generally would be required to distribute any such
non-REIT
earnings and profits to our stockholders within 90 days of the determination and pay a statutory interest charge at a specified rate to the IRS. Such a distribution would be in addition to the distribution of REIT taxable income necessary to satisfy the REIT distribution requirement and may require that we borrow funds to make the distribution even if the then-prevailing market conditions are not favorable for borrowings. In addition, payment of the statutory interest charge could materially and adversely affect us.
Legislative or other actions affecting REITs could have a negative effect on us.
The rules dealing with federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury. Changes to the tax laws, with or without retroactive application, could materially and adversely affect our investors or us. We cannot predict how changes in the tax laws might affect our investors or us. New legislation, Treasury Regulations, administrative interpretations or court decisions could significantly and negatively affect our ability to qualify as a REIT or the federal income tax consequences of such qualification, or the federal income tax consequences of an investment in us. Also, the law relating to the tax treatment of other entities, or an investment in other entities, could change, making an investment in such other entities more attractive relative to an investment in a REIT.
The 2017 Tax Legislation significantly changed the U.S. federal income taxation of U.S. businesses and their owners, including REITs and their stockholders. The legislation remains unclear in many respects and has been and may continue to be subject to potential amendments and technical corrections, as well as interpretations and implementing regulations by the Treasury and IRS, any of which could lessen or increase the impact of the legislation.
Item 1B. Unresolved Staff Comments
None.
 
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Table of Contents
Item 2.     Properties
PROPERTY PORTFOLIO DIVERSIFICATION
 
1,860
  
99.6%
  
48
  
301
  
28
Owned Properties
  
Occupancy
  
States
  
Tenants
  
Retail Industries
Diversification By Tenant
The following table sets forth a summary of tenant concentration for our owned real estate properties as of December 31, 2020:
 
Tenant
(1)
  
Number of
Properties
    
Total
Square Feet
(in thousands)
    
Percent of
ABR
 
Life Time Fitness, Inc.
  
 
7
 
  
 
685
 
  
 
3.0
Cajun Global LLC
  
 
163
 
  
 
234
 
  
 
2.5
BJ’s Wholesale Club, Inc.
  
 
8
 
  
 
912
 
  
 
2.2
The Home Depot, Inc.
  
 
7
 
  
 
848
 
  
 
2.2
At Home Group, Inc.
  
 
13
 
  
 
1,597
 
  
 
2.2
Alimentation Couche-Tard, Inc.
  
 
76
 
  
 
230
 
  
 
2.1
Walgreen Co.
  
 
34
 
  
 
487
 
  
 
2.0
GPM Investments, LLC
  
 
110
 
  
 
304
 
  
 
2.0
Dollar Tree, Inc.
  
 
106
 
  
 
927
 
  
 
1.9
CVS Caremark Corporation
  
 
33
 
  
 
409
 
  
 
1.7
Other
  
 
1,296
 
  
 
33,405
 
  
 
78.2
Vacant
  
 
7
 
  
 
641
 
  
 
 
Total
  
 
1,860
 
  
 
40,679
 
  
 
100.0
 
(1)
Tenants represent legal entities ultimately responsible for obligations under the lease agreements or affiliated entities. Other tenants may operate the same or similar business concepts or brands as those set forth above.
Lease Expirations
The following table sets forth a summary of lease expirations for our owned real estate as of December 31, 2020. As of December 31, 2020, the weighted average remaining
non-cancellable
initial term of our leases (based on ABR) was 10.1 years. The information set forth in the table assumes that tenants do not exercise renewal options or any early termination rights:
 
Leases Expiring In:
  
Number of
Properties
    
ABR
(in thousands) 
(1)
    
Total Square
Feet
(in thousands)
    
Percent of
ABR
 
2021
  
 
47
 
  
$
13,028
 
  
 
1,363
 
  
 
2.6
2022
  
 
40
 
  
 
16,548
 
  
 
1,599
 
  
 
3.2
2023
  
 
113
 
  
 
32,049
 
  
 
3,034
 
  
 
6.3
2024
  
 
47
 
  
 
17,916
 
  
 
1,557
 
  
 
3.5
2025
  
 
52
 
  
 
19,334
 
  
 
1,517
 
  
 
3.8
2026
  
 
108
 
  
 
38,149
 
  
 
3,724
 
  
 
7.5
2027
  
 
131
 
  
 
40,635
 
  
 
2,984
 
  
 
8.0
2028
  
 
106
 
  
 
28,727
 
  
 
1,798
 
  
 
5.6
2029
  
 
320
 
  
 
42,692
 
  
 
2,836
 
  
 
8.4
2030
  
 
77
 
  
 
22,022
 
  
 
2,220
 
  
 
4.3
Thereafter
  
 
812
 
  
 
238,516
 
  
 
17,406
 
  
 
46.8
Vacant
  
 
7
 
  
 
 
  
 
641
 
  
 
 
Total owned properties
  
 
1,860
 
  
$
509,616
 
  
 
40,679
 
  
 
100
 
(1)
ABR is not adjusted for the impact of abatements provided as relief due to the
COVID-19
pandemic. As of the date of this report, SRC has agreed to a total of $1.0 million of abatements for the period from January 1, 2021 - December 31, 2021.
 
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Table of Contents
Diversification By Geography
The following table sets forth a summary of geographic concentration for our owned real estate properties as of December 31, 2020:
 
 
Location
 
Number of
Properties
   
Total Square
Feet
(in thousands)
   
Percent of
ABR
    
Location (continued)
 
Number of
Properties
   
Total Square
Feet
(in thousands)
   
Percent of
ABR
 
Texas
 
 
247
 
 
 
4,413
 
 
 
11.1
  
New Jersey
 
 
13
 
 
 
717
 
 
 
1.3
Florida
 
 
154
 
 
 
2,533
 
 
 
8.8
  
Utah
 
 
18
 
 
 
333
 
 
 
1.2
Georgia
 
 
138
 
 
 
2,583
 
 
 
6.8
  
Pennsylvania
 
 
20
 
 
 
483
 
 
 
1.1
Ohio
 
 
86
 
 
 
2,396
 
 
 
5.1
  
Alaska
 
 
9
 
 
 
319
 
 
 
1.0
California
 
 
23
 
 
 
1,199
 
 
 
4.2
  
New Hampshire
 
 
17
 
 
 
645
 
 
 
1.0
Tennessee
 
 
107
 
 
 
1,846
 
 
 
4.0
  
Wisconsin
 
 
12
 
 
 
696
 
 
 
0.9
Michigan
 
 
86
 
 
 
1,700
 
 
 
3.9
  
Idaho
 
 
16
 
 
 
273
 
 
 
0.9
Illinois
 
 
52
 
 
 
1,295
 
 
 
3.8
  
Kansas
 
 
17
 
 
 
341
 
 
 
0.8
New York
 
 
33
 
 
 
1,924
 
 
 
3.5
  
Connecticut
 
 
5
 
 
 
686
 
 
 
0.7
Missouri
 
 
67
 
 
 
1,552
 
 
 
3.2
  
Maine
 
 
27
 
 
 
85
 
 
 
0.5
Arizona
 
 
47
 
 
 
835
 
 
 
2.9
  
Washington
 
 
7
 
 
 
125
 
 
 
0.4
South Carolina
 
 
55
 
 
 
852
 
 
 
2.9
  
West Virginia
 
 
13
 
 
 
202
 
 
 
0.4
North Carolina
 
 
68
 
 
 
1,312
 
 
 
2.7
  
Delaware
 
 
2
 
 
 
128
 
 
 
0.4
Alabama
 
 
94
 
 
 
715
 
 
 
2.5
  
Nebraska
 
 
8
 
 
 
218
 
 
 
0.4
Virginia
 
 
44
 
 
 
1,335
 
 
 
2.5
  
Montana
 
 
3
 
 
 
152
 
 
 
0.4
Maryland
 
 
10
 
 
 
721
 
 
 
2.4
  
Massachusetts
 
 
2
 
 
 
131
 
 
 
0.4
Minnesota
 
 
24
 
 
 
902
 
 
 
2.2
  
Iowa
 
 
11
 
 
 
190
 
 
 
0.3
Colorado
 
 
27
 
 
 
991
 
 
 
2.0
  
North Dakota
 
 
3
 
 
 
105
 
 
 
0.3
Oklahoma
 
 
54
 
 
 
935
 
 
 
2.0
  
Rhode Island
 
 
3
 
 
 
95
 
 
 
0.3
Mississippi
 
 
53
 
 
 
753
 
 
 
2.0
  
Oregon
 
 
3
 
 
 
105
 
 
 
0.3
Indiana
 
 
39
 
 
 
1,517
 
 
 
1.9
  
South Dakota
 
 
2
 
 
 
30
 
 
 
0.2
New Mexico
 
 
29
 
 
 
622
 
 
 
1.8
  
Wyoming
 
 
1
 
 
 
35
 
 
 
0.1
Kentucky
 
 
43
 
 
 
538
 
 
 
1.6
  
U.S. Virgin Islands
 
 
1
 
 
 
38
 
 
 
0.1
Arkansas
 
 
42
 
 
 
637
 
 
 
1.4
  
Vermont
 
 
1
 
 
 
2
 
 
 
*
 
Louisiana
 
 
24
 
 
 
439
 
 
 
1.4
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Less than 0.1%
 
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Table of Contents
Diversification By Asset Type and Tenant Industry
The following table sets forth a summary of concentration by asset types and, for retail assets, the tenant industry of our owned properties as of December 31, 2020:
 
Asset Type
 
Tenant Industry
  
Number of
Properties
    
Total
Square Feet
(in thousands)
    
Percent of
ABR
 
Retail
    
 
1,660
 
  
 
26,059
 
  
 
77.9
 
Health and Fitness
  
 
44
 
  
 
2,329
 
  
 
7.7
 
Convenience Stores
  
 
329
 
  
 
1,046
 
  
 
7.6
 
Restaurants - Quick Service
  
 
361
 
  
 
791
 
  
 
6.4
 
Restaurants - Casual Dining
  
 
134
 
  
 
940
 
  
 
5.8
 
Movie Theaters
  
 
37
 
  
 
1,953
 
  
 
5.1
 
Dealerships
  
 
29
 
  
 
953
 
  
 
4.4
 
Drug Stores / Pharmacies
  
 
77
 
  
 
991
 
  
 
4.4
 
Entertainment
  
 
24
 
  
 
1,022
 
  
 
3.4
 
Car Washes
  
 
65
 
  
 
308
 
  
 
3.2
 
Dollar Stores
  
 
172
 
  
 
1,576
 
  
 
3.1
 
Grocery
  
 
36
 
  
 
1,654
 
  
 
3.0
 
Home Improvement
  
 
14
 
  
 
1,595
 
  
 
2.9
 
Warehouse Club and Supercenters
  
 
14
 
  
 
1,543
 
  
 
2.8
 
Home Décor
  
 
16
 
  
 
2,147
 
  
 
2.7
 
Specialty Retail
  
 
53
 
  
 
1,142
 
  
 
2.3
 
Sporting Goods
  
 
18
 
  
 
1,026
 
  
 
2.2
 
Automotive Service
  
 
69
 
  
 
578
 
  
 
2.2
 
Department Stores
  
 
15
 
  
 
1,334
 
  
 
1.9
 
Home Furnishings
  
 
18
 
  
 
783
 
  
 
1.7
 
Early Education
  
 
35
 
  
 
384
 
  
 
1.5
 
Automotive Parts
  
 
55
 
  
 
388
 
  
 
1.1
 
Office Supplies
  
 
16
 
  
 
351
 
  
 
0.7
 
Other
  
 
9
 
  
 
294
 
  
 
0.7
 
Medical Office
  
 
5
 
  
 
65
 
  
 
0.5
 
Pet Supplies and Service
  
 
4
 
  
 
133
 
  
 
0.4
 
Apparel
  
 
4
 
  
 
92
 
  
 
0.2
 
Vacant
  
 
7
 
  
 
641
 
  
 
 
Industrial
    
 
158
 
  
 
12,609
 
  
 
14.9
Office and Other
    
 
42
 
  
 
2,011
 
  
 
7.2
Total
 
 
  
 
1,860
 
  
 
40,679
 
  
 
100.0
 
Item 3.
Legal Proceedings
From
time-to-time,
we may be subject to certain claims and lawsuits in the ordinary course of business, the outcome of which cannot be determined at this time. In the opinion of management, any liability we might incur upon the resolution of these claims and lawsuits will not, in the aggregate, have a material adverse effect on our consolidated financial position or results of operations.
 
Item 4.
Mine Safety Disclosure
None.
 
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Table of Contents
PART II
Item 5.      Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
MARKET INFORMATION FOR COMMON STOCK, HOLDERS OF RECORD AND DIVIDEND POLICY
Spirit Realty Capital, Inc.
Our common stock is traded on the NYSE under the symbol “SRC.” As of February 16, 2021, there were approximately 2,139 stockholders of record of our common stock. Because many of our shares of common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
We intend to pay regular quarterly dividends to our stockholders, although all future distributions will be declared and paid at the discretion of the Board of Directors and will depend upon cash generated by operating activities, our financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Code and such other factors as the Board of Directors deems relevant.
Spirit Realty, L.P.
Spirit Realty Capital, Inc. directly or indirectly owns all of Spirit Realty, L.P.’s partnership units. Therefore, there is no established trading market for Spirit Realty, L.P.’s partnership units.
RECENT SALES OF UNREGISTERED SECURITIES; USE OF PROCEEDS FROM REGISTERED SECURITIES
Spirit Realty Capital, Inc.
No sales of unregistered securities. Gross proceeds of $330.2 million from sales of registered securities during the fourth quarter of 2020 were used for funding acquisitions, operating expenses and payment of interest and principal on current debt financings.
Spirit Realty, L.P.
None.
ISSUER PURCHASES OF EQUITY SECURITIES
Spirit Realty Capital, Inc.
None.
Spirit Realty, L.P.
None.
EQUITY COMPENSATION PLAN INFORMATION
Our equity compensation plan information required by this item will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
 
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Table of Contents
PERFORMANCE GRAPH
The information below shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, other than as provided in Item 201 of Regulation
S-K,
or to the liabilities of Section 18 of the Exchange Act, except to the extent we specifically request that such information be treated as soliciting material or specifically incorporate it by reference into a filing under the Securities Act or the Exchange Act.
The following graph shows our cumulative total stockholder return for the five most recent fiscal years, with stock prices retroactively adjusted for the
Spin-Off
of SMTA. The graph assumes a $100 investment in each of the indices on December 31, 2015 and the reinvestment of all cash dividends. Our stock price performance shown in the following graph is not indicative of future stock price performance.
 
 
 
    
Period Ended
 
Index:
  
 
12/31/2015
 
  
 
12/31/2016  
 
  
 
12/31/2017  
 
  
 
12/31/2018  
 
  
 
12/31/2019  
 
  
 
12/31/2020      
 
Spirit Realty Capital, Inc.
  
$
100.00
 
  
$
115.82
 
  
$
100.46
 
  
$
99.82
 
  
$
147.33
 
  
$
129.70    
 
S&P 500
  
$
100.00
 
  
$
109.54
 
  
$
130.81
 
  
$
122.65
 
  
$
158.07
 
  
$
183.77    
 
NAREIT US Equity REIT Index
  
$
100.00
 
  
$
108.52
 
  
$
114.19
 
  
$
108.91
 
  
$
137.23
 
  
$
126.25    
 
 
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Table of Contents
Item 6.       Selected Financial Data
The following tables set forth, on a historical basis, selected financial and operating data for the Company. The following data should be read in conjunction with our financial statements and notes thereto and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Annual Report on Form
10-K.
 
         
Years Ended December 31,
       
(Dollars in thousands, except per share data)
 
2020
   
2019
   
2018
   
2017
   
2016
 
Statement of Operations Data:
         
Rental income
 
$
479,901
 
 
$
438,691
 
 
$
402,321
 
 
$
424,260
 
 
$
420,003
 
Related party fee income
 
 
678
 
 
 
69,218
 
 
 
15,838
 
 
 
 
 
 
 
General and administrative
 
 
48,380
 
 
 
52,424
 
 
 
52,993
 
 
 
54,998
 
 
 
48,651
 
Property costs (including reimbursable)
 
 
24,492
 
 
 
18,637
 
 
 
21,066
 
 
 
28,487
 
 
 
26,045
 
Interest
 
 
104,165
 
 
 
101,060
 
 
 
97,548
 
 
 
113,394
 
 
 
118,690
 
Income from continuing operations
 
 
26,708
 
 
 
175,266
 
 
 
148,491
 
 
 
40,428
 
 
 
28,638
 
Net income attributable to common stockholders
 
 
16,358
 
 
 
164,916
 
 
 
121,700
 
 
 
74,618
 
 
 
97,446
 
Net income from continuing operations per common share—diluted
 
 
0.15
 
 
 
1.81
 
 
 
1.58
 
 
 
0.40
 
 
 
0.30
 
Dividends declared per common share issued
(1)
 
 
2.50
 
 
 
2.50
 
 
 
3.05
 
 
 
3.60
 
 
 
3.53
 
Weighted average shares of common stock outstanding—diluted
(1)
 
 
104,535,384
 
 
 
90,869,312
 
 
 
86,476,449
 
 
 
93,588,560
 
 
 
93,849,250
 
Other Data:
         
FFO
(2)
 
$
285,716
 
 
$
305,052
 
 
$
322,359
 
 
$
367,296
 
 
$
394,952
 
AFFO
(2)
 
 
309,447
 
 
 
341,731
 
 
 
346,323
 
 
 
398,148
 
 
 
412,999
 
Number of properties at period end
 
 
1,860
 
 
 
1,795
 
 
 
1,514
 
 
 
2,480
 
 
 
2,615
 
Owned properties occupancy at period end (based on number of properties)
 
 
99.6
 
 
99.7
 
 
99.7
 
 
99.2
 
 
98.2
(1)
 
Adjusted for the reverse stock split effected in 2018.
 
(2)
 
See the definitions and reconciliation of
non-GAAP
measures in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations –
Non-GAAP
Financial Measures.”
 
           
December 31,
        
(Dollars in thousands)
  
2020
    
2019
    
2018
    
2017
(1)
    
2016
(1)
 
Balance Sheet Data:
              
Gross investments, including related lease intangibles
  
$
6,805,437
 
  
$
6,175,703
 
  
$
5,123,631
 
  
$
7,903,025
 
  
$
8,247,654
 
Net investments, including related lease intangibles
  
 
5,821,628
 
  
 
5,341,228
 
  
 
4,396,098
 
  
 
6,614,025
 
  
 
7,090,335
 
Cash and cash equivalents
  
 
70,303
 
  
 
14,492
 
  
 
14,493
 
  
 
8,798
 
  
 
10,059
 
Total assets
  
 
6,396,786
 
  
 
5,832,661
 
  
 
5,096,316
 
  
 
7,263,511
 
  
 
7,677,971
 
Total debt, net
  
 
2,506,341
 
  
 
2,153,017
 
  
 
2,054,637
 
  
 
3,639,680
 
  
 
3,664,628
 
Total liabilities
  
 
2,795,666
 
  
 
2,419,412
 
  
 
2,294,567
 
  
 
3,943,902
 
  
 
3,995,863
 
Total stockholders’ equity
  
 
3,601,120
 
  
 
3,413,249
 
  
 
2,801,749
 
  
 
3,319,609
 
  
 
3,682,108
 
(1) 
Balances include assets and liabilities of both continuing operations and discontinued operations. Reference Note 12 to the accompanying consolidated financial statements for additional information.
 
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Item 7.     Management’s Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Spirit Realty Capital, Inc. is a New York Stock Exchange listed company under the ticker symbol “SRC.” We are a self-administered and self-managed REIT with
in-house
capabilities including acquisition, credit research, asset management, portfolio management, real estate research, legal, finance and accounting functions. We primarily invest in single-tenant real estate assets throughout the United States, which are generally acquired through sale-leaseback transactions and subsequently leased on a long-term,
triple-net
basis to high quality tenants with business operations within retail, industrial, office and other industries. Single tenant, operationally essential real estate consists of properties that are free-standing, commercial real estate facilities where our tenants conduct activities that are essential to the generation of their sales and profits. Under a
triple-net
lease, the tenant is typically responsible for all improvements and is contractually obligated to pay all property operating expenses, such as real estate taxes, insurance premiums and repair and maintenance costs.
As of December 31, 2020, our owned real estate represented investments in 1,860 properties. Our properties are leased to 301 tenants across 48 states and 28 retail industries. As of December 31, 2020, our owned properties were approximately 99.6% occupied (based on the number of economically yielding properties).
Our operations are carried out through the Operating Partnership. OP Holdings, one of our wholly-owned subsidiaries, is the sole general partner and owns approximately 1% of the Operating Partnership. We and one of our wholly-owned subsidiaries are the only limited partners, and together own the remaining 99% of the Operating Partnership. Although the Operating Partnership is wholly-owned by us, in the future, we may issue partnership interests in the Operating Partnership to third parties in exchange for property owned by such third parties. In general, any partnership interests in the Operating Partnership issued to third parties would be exchangeable for cash or, at our election, shares of our common stock at specified ratios set when such partnership interests in the Operating Partnership are issued.
We have elected to be taxed as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2005. We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT for federal income tax purposes commencing with such taxable year, and we intend to continue operating in such a manner.
On May 31, 2018, we completed a
Spin-Off
of all our interests in the assets that collateralized Master Trust 2014, our properties leased to Shopko, and certain other assets into an independent, publicly traded REIT, SMTA. In conjunction with the
Spin-Off,
we entered into the Asset Management Agreement with SMTA, pursuant to which the Company acted as external asset manager for SMTA for an annual management fee of $20.0 million. In September 2019, SMTA sold the assets held in Master Trust 2014 and approved a plan of liquidation. The Asset Management Agreement was terminated, and the Interim Management Agreement with SMTA became effective. Pursuant to the Interim Management Agreement, we were entitled to receive $1 million during the initial
one-year
term and $4 million for any renewal
one-year
term to manage and liquidate the remaining SMTA assets. The Interim Management Agreement was terminated effective September 4, 2020 and we have no further continuing involvement with SMTA.
Given the onset of the
COVID-19
pandemic in 2020, many of our tenants requested rent deferrals or other forms of relief. Our discussions with tenants requesting relief substantially focused on industries that have been directly disrupted by the
COVID-19
pandemic and restrictions intended to prevent its spread, particularly movie theaters, casual dining restaurants, entertainment, health and fitness and hotels. These and other industries may be further impacted in the future depending on various factors, including the duration of the
COVID-19
pandemic, the reinstitution of restrictions intended to prevent its spread or the imposition of new, more restrictive measures. Even after such restrictions are lifted or reduced, the willingness of customers to visit our tenants’ businesses may be reduced due to lingering concerns regarding the continued risk of
COVID-19
transmission and heightened sensitivity to risks associated with the transmission of other diseases.
For the year ended December 31, 2020, we deferred $31.9 million of rent, of which we recognized $26.3 million in rental income (the remaining $5.6 million was deemed not probable of collection), and abated $6.3 million of rent. As of December 31, 2020, we had an accounts receivable balance of $20.2 million related to deferred rent. For the year
 
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ended December 31, 2021, we expect to see significant reductions in the impact of
COVID-19
and have currently granted additional rent deferrals of $9.2 million and abatements of $1.0 million. For rent deferrals, the deferral periods range generally from one to six months, with an average deferral period of four months and an average repayment period of 12 months. Of the tenants who we have granted rent deferrals, 19% are public companies and the weighted average remaining lease term of leases with deferrals is 10.2 years (based on Base Rent). Although we are and will continue to be actively engaged in rent collection efforts related to uncollected rent, as well as working with certain tenants who have requested rent deferrals, we can provide no assurance that such efforts or our efforts in future periods will be successful, particularly in the event that the
COVID-19
pandemic and restrictions intended to prevent its spread continue for a prolonged period. Refer to Part I, Item 1A. “Risk Factors” for additional information about the potential impact of the
COVID-19
pandemic and restrictions intended to prevent its spread on our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and make distributions to our stockholders.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our accounting policies are determined in accordance with GAAP. The preparation of our financial statements requires us to make estimates and assumptions that are subjective in nature and, as a result, our actual results could differ materially from our estimates. Estimates and assumptions include, among other things, subjective judgments regarding the fair values and useful lives of our properties for depreciation and lease classification purposes, the collectability of receivables and asset impairment analysis. Set forth below are the more critical accounting policies that require management judgment and estimates in the preparation of our consolidated financial statements. See Notes 2 and 8 to the consolidated financial statements for additional details.
Purchase Accounting and Acquisition of Real Estate; Lease Intangibles
We evaluate a number of factors in estimating fair value of real estate acquisitions, including building age, building location, building condition, rent comparables from similar properties, and terms of
in-place
leases, if any. Lease intangibles, if any, acquired in conjunction with the purchase of real estate represent the value of
in-place
leases and above or below-market leases.
In-place
lease intangibles are valued based on our estimates of costs related to tenant acquisition and the carrying costs that would be incurred during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases at the time of the acquisition. We then allocate the purchase price (including acquisition and closing costs) to land, building, improvements and equipment based on their relative fair values. For properties acquired with
in-place
leases, we allocate the purchase price of real estate to the tangible and intangible assets and liabilities acquired based on their estimated fair values. Above and below-market lease intangibles are recorded based on the present value of the difference between the contractual amounts to be paid pursuant to the leases at the time of acquisition of the real estate and our estimate of current market lease rates for the property, measured over a period equal to the remaining initial term of the lease and, in certain instances, over the renewal period.
Rental Income: Cash and Straight-line Rent
We primarily lease real estate to our tenants under long-term,
triple-net
leases that are classified as operating leases. To evaluate lease classification, we assess the terms and conditions of the lease to determine the appropriate lease term and do not include options to extend, terminate or purchase in our evaluation for lease classification purposes or for recognizing rental income unless we are reasonably certain the tenant will exercise the option. Lease classification also requires an estimation of the residual value of the property at the end of the lease term. For acquisitions, we use the estimated tangible fair value of the property at the date of acquisition. For lease modifications, we generally use sales comparables or a direct capitalization approach to determine fair value.
Our leases generally provide for rent escalations throughout the term of the lease. For leases with fixed rent escalators, rental income is recognized on a straight-line basis to produce a constant periodic rent over the term of the lease. For leases with contingent rent escalators, increases in rental revenue are recognized when the changes in the rental rates have occurred. Some of our leases also provide for contingent rent based on a percentage of the tenant’s gross sales, which is recognized when the change in the factor on which the contingent lease payment is based actually occurs.
In April 2020, the FASB released a Staff Q&A regarding the accounting for lease concessions related to the effects of the
COVID-19
pandemic, noting that the underlying premise in requiring a modified lease to be accounted for as if it
 
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were a new lease under ASC 842 is that the modified terms and conditions affect the economics of the lease for the remainder of the lease term. As such, the FASB staff clarified that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the
COVID-19
pandemic consistent with how those concessions would be accounted for under ASC 842 as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). We made this election and account for rent deferrals by increasing the rent receivables as receivables accrue and continuing to recognize income during the deferral period. Lease concessions other than rent deferrals are evaluated to determine if a substantive change to the consideration in the original lease contract has occurred and should be accounted for as a lease modification.
Rental income, including deferred rent, is subject to an evaluation for collectability, which includes our estimates of amounts that will not be realized based on an assessment of the risks inherent in the portfolio, considering historical experience, as well as the tenant’s payment history and financial condition. We do not recognize rental income for amounts that are not probable of collection.
Impairment
We review our real estate investments and related lease intangibles periodically for indicators of impairment including, but not limited to: the asset being held for sale, vacant or
non-operating,
tenant bankruptcy or delinquency, and leases expiring in 60 days or less. For assets with indicators of impairment, we then evaluate if its carrying amount may not be recoverable. We consider factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors in making this assessment. An asset is considered impaired if its carrying value exceeds its estimated undiscounted cash flows.
Impairment is calculated as the amount by which the carrying value exceeds the estimated fair value, or for assets held for sale, the amount by which the carrying value exceeds fair value less costs to sell. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results. The fair values of real estate and intangible assets are determined using the following information, depending on availability, in order of preference: signed purchase and sale agreements or letters of intent; broker opinions of value; market prices for comparable properties; estimates of residual value; and expectations for the use of the real estate.
REIT Status
We elected to be taxed as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2005. We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT commencing with such taxable year, and we intend to continue operating in such a manner. To maintain our REIT status, we are required to annually distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain, and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate level federal income tax on the earnings distributed to our stockholders that we derive from our REIT qualifying activities. We are still subject to state and local income and franchise taxes and to federal income and excise tax on our undistributed income. If we fail to qualify as a REIT in any taxable year and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal corporate tax, including any applicable alternative minimum tax for taxable years beginning before January 1, 2018. Unless entitled to relief under specific statutory provisions, we would be ineligible to elect to be treated as a REIT for the four taxable years following the year for which we lose our qualification. It is not possible to state whether in all circumstances we would be entitled to this statutory relief.
 
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RESULTS OF OPERATIONS
In this section, we discuss the results of our operations for the year ended December 31, 2020 compared to the year ended December 31, 2019. For a discussion of the year ended December 31, 2019 compared to the year ended December 31, 2018, please refer to Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form
10-K
for the year ended December 31, 2019.
 
    
Years Ended December 31,
 
(In Thousands)
  
    2020
   
    2019
   
    Change
   
    % Change
 
Revenues:
        
Rental income
  
 
$    479,901
 
 
 
$    438,691
 
 
 
$       41,210
 
 
 
9.4
Interest income on loans receivable
  
 
998
 
 
 
3,240
 
 
 
(2,242
 
 
(69.2
)% 
Earned income from direct financing leases
  
 
571
 
 
 
1,239
 
 
 
(668
 
 
(53.9
)% 
Related party fee income
  
 
678
 
 
 
69,218
 
 
 
(68,540
 
 
(99.0
)% 
Other income
  
 
1,469
 
 
 
4,039
 
 
 
(2,570
 
 
(63.6
)% 
Total revenues
  
 
483,617
 
 
 
516,427
 
 
 
(32,810
 
 
(6.4
)% 
Expenses:
        
General and administrative
  
 
48,380
 
 
 
52,424
 
 
 
(4,044
 
 
(7.7
)% 
Termination of interest rate swaps
  
 
 
 
 
12,461
 
 
 
(12,461
 
 
(100.0
)% 
Property costs (including reimbursable)
  
 
24,492
 
 
 
18,637
 
 
 
5,855
 
 
 
31.4
Deal pursuit costs
  
 
2,432
 
 
 
844
 
 
 
1,588
 
 
 
NM
 
Interest
  
 
104,165
 
 
 
101,060
 
 
 
3,105
 
 
 
3.1
Depreciation and amortization
  
 
212,620
 
 
 
175,465
 
 
 
37,155
 
 
 
21.2
Impairments
  
 
81,476
 
 
 
24,091
 
 
 
57,385
 
 
 
NM
 
Total expenses
  
 
473,565
 
 
 
384,982
 
 
 
88,583
 
 
 
23.0
Other income:
        
Loss on debt extinguishment
  
 
(7,227
 
 
(14,330
 
 
7,103
 
 
 
(49.6
)% 
Gain on disposition of assets
  
 
24,156
 
 
 
58,850
 
 
 
(34,694
 
 
(59.0
)% 
Preferred dividend income from SMTA
  
 
 
 
 
10,802
 
 
 
(10,802
 
 
(100.0
)% 
Total other income
  
 
16,929
 
 
 
55,322
 
 
 
(38,393
 
 
(69.4
)% 
Income before income tax expense
  
 
26,981
 
 
 
186,767
 
 
 
(159,786
 
 
(85.6
)% 
Income tax expense
  
 
(273
 
 
(11,501
 
 
11,228
 
 
 
(97.6
)% 
Net income
  
 
$      26,708
 
 
 
$    175,266
 
 
 
$    (148,558
 
 
(84.8
)% 
NM - Percentages over 100% are not displayed.
Changes related to operating properties
Rental income; Property costs (including reimbursable); Depreciation and amortization
The components of rental income are summarized below:
 
    
Years Ended December 31,
 
(In Thousands)
  
2020
    
2019   
 
Base Cash Rent
  
$
453,013
 
  
$
404,720
 
Variable cash rent (including reimbursables)
  
 
13,176
 
  
 
12,737
 
Straight-line rent, net of uncollectible reserve
  
 
11,876
 
  
 
16,924
 
Amortization of above- and below- market lease intangibles, net
  
 
1,836
 
  
 
4,310
 
Total rental income
  
$
            479,901
 
  
$
            438,691
 
The increase in Base Cash Rent, the largest component of rental income, year-over-year was driven by our net acquisitions, which also was the driver for the increase in depreciation and amortization. We acquired 146 properties
 
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during 2020 with a total of $58.4 million of annual
in-place
rent (monthly fixed rent at date of transaction multiplied by 12). During the same period, we disposed of 38 properties, 20 of which were vacant and the remaining 18 had annual
in-place
rents of $4.5 million. Our acquisition and disposition activity for the year ended December 31, 2020 is summarized below (in thousands):
 
 
The increase in Base Cash Rent due to net acquisitions was partially offset by an increase in amounts deemed not probable of collection, driven by tenant credit issues from the
COVID-19
pandemic, from a net recovery of $0.4 million for the year ended December 31, 2019 to a net reduction of $10.9 million for the year ended December 31, 2020. A majority of these tenant credit issues relate to tenants in the movie theater industry and we expect movie theater operators to continue to face headwinds in 2021. The increase year-over-year was also reduced by $6.3 million of rent abatements for the year ended December 31, 2020, which were executed as relief due to the
COVID-19
pandemic.
Variable cash rent is primarily comprised of tenant reimbursements, where our tenants are obligated under the lease agreement to reimburse us for certain property costs we incur, less reimbursements we deem not probable of collection. As such, the change in variable cash rent is driven by the change in property costs year-over-year. For the year ended December 31, 2020, property costs included $14.5 million of reimbursable expenses, compared to $14.9 million for 2019. As such, variable cash rent and reimbursable property costs remained relatively flat year-over-year. The remaining $10.0 million of property costs for the year ended December 31, 2020 were
non-reimbursable,
compared to $3.7 million for 2019. The increase in
non-reimbursable
costs of $6.3 million was driven by an increase in
non-reimbursable
property taxes of $3.7 million due to tenant credit issues from the
COVID-19
pandemic, as well as an increase in carrying costs of vacant properties of $2.2 million due to a decreased average occupancy during 2020 compared to 2019.
Non-cash
rental income consists of straight-line rental revenue, amortization of above- and below-market lease intangibles and bad debt expense.
Non-cash
rental income decreased period-over-period primarily as a result of a $14.7 million increase in straight-line rental revenue deemed not probable of collection, driven by tenant credit issues from the
COVID-19
pandemic. This was partially offset by an increase in straight-line rental revenue of $9.7 million year-over-year as a result of acquisitions and lease modifications.
Impairments
Impairments increased year-over-year on underperforming properties, with $49.0 million of impairments recorded on 28 properties for the year ended December 31, 2020, compared to $18.6 million of impairments recorded on 27 properties in the comparative year. The increase was driven by multi-tenant properties, as well as single occupant properties with tenants in the health and fitness, casual dining and movie theater industries, all of which were significantly impacted by the
COVID-19
pandemic.
Impairments also increased year-over-year on Vacant properties, with $14.2 million of impairments recorded on eight properties for the year ended December 31, 2020, compared to $5.5 million of impairments recorded on seven properties in the comparative year.
Finally, the increase in impairments year-over-year was caused by $18.2 million of impairments recorded on lease intangible assets, primarily as a result of a tenant bankruptcy that had credit issues prior to the
COVID-19
pandemic which resulted in the termination of the lease for four properties, and $0.1 million of credit loss allowance on our direct financing lease during the year ended December 31, 2020, with no comparable impairments recognized in 2019.
 
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Gain on disposition of assets
Gain on disposition of assets decreased year-over-year. During the year ended December 31, 2020, we disposed of 38 properties and recorded net gains totaling $24.2 million. There were $23.2 million in net gains on the sale of 18 active properties and $1.3 million in net gains on the sale of 20 Vacant properties. These gains were partially offset by a $0.2 million loss recorded on the sale of a notes receivable and $0.1 million in other net losses.
During the year ended December 31, 2019, we disposed of 44 properties and recorded net gains totaling $58.9 million. There were $69.1 million in net gains on the sale of 23 active properties and $1.5 million in net gains on the sale of 18 Vacant properties. One property was returned to the lender in conjunction with CMBS debt extinguishment and two properties were leasehold interests that were surrendered to the lessors, which did not result in a gain or loss on disposition. Additionally, one building in a multi-tenant property was sold, resulting in a net loss of $11.7 million, and the remaining stand-alone occupied building of this property was retained.
Changes related to debt
Interest expense; Loss on debt extinguishment; Termination of interest rate swaps
Our debt as of December 31, 2019 and 2020 is summarized below (in thousands):
 
 
In January 2019, we terminated the 2015 Credit Agreement and the 2015 Term Loan Agreement, resulting in a loss on debt extinguishment of $0.7 million, and entered into the 2019 Revolving Credit and Term Loan Agreement, comprised of the 2019 Credit Facility and
A-1
Term Loans. We also simultaneously entered into delayed draw
A-2
Term Loans, which were drawn in May 2019 to repurchase the 2019 Convertible Notes at their maturity.
In June 2019, we issued the 2029 Senior Notes and extinguished the Master Trust 2013 notes, resulting in a loss on debt extinguishment of $15.0 million. In September 2019, we issued the 2027 Senior Notes and the 2030 Senior Notes. Proceeds from these issuances were primarily utilized to terminate the
A-1
Term Loans and
A-2
Term Loans, which resulted in a loss on debt extinguishment of $5.3 million. Additionally, during 2019, we extinguished two CMBS loans, resulting in a net gain on debt extinguishment of $6.7 million.
During the first half of 2020, we entered into the 2020 Term Loans. In August 2020, we issued $450.0 million of 2031 Senior Notes, which triggered a mandatory repayment of $222.0 million of the 2020 Term Loans that resulted in a loss on debt extinguishment of $1.0 million. Remaining proceeds from the 2031 Senior Notes issuance were primarily utilized to repurchase $154.6 million of Convertible 2021 Notes, resulting in a loss on debt extinguishment of $6.2 million. Subsequent to December 31, 2020, we repaid the remaining 2020 Term Loans in full and expect to settle the remaining 2021 Convertible Notes in cash during 2021.
 
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These changes in our debt structure resulted in an overall increase in our total debt outstanding, but with a reduction in our weighted average interest rate from 3.85% at December 31, 2019 to 3.64% at December 31, 2020. As such, we had a slight increase in total interest expense year-over-year:
 
    
Years Ended December 31,
 
(In Thousands)
  
       2020
    
2019       
 
Interest expense – revolving credit facilities
  
$
3,686
 
  
$
5,201
 
Interest expense – term loans
  
 
3,545
 
  
 
15,448
 
Interest expense – Senior Unsecured Notes
  
 
61,750
 
  
 
29,286
 
Interest expense – mortgages and notes payable
  
 
12,028
 
  
 
             18,733
 
Interest expense – Convertible Notes
  
 
            10,728
 
  
 
17,245
 
Interest expense – interest rate swaps
  
 
 
  
 
972
 
Non-cash
interest expense
  
 
12,428
 
  
 
14,175
 
Total interest expense
  
$
104,165
 
  
$
101,060
 
Finally, in September 2019, we terminated our interest rate swaps, which were entered into as a hedge against our variable-rate debt, in conjunction with the repayment of the
A-1
Term Loans and
A-2
Term Loans. This termination resulted in a fee of $24.8 million. As we continued to hold variable-rate debt at time of termination, a portion of the hedged transactions remained probable to occur. Therefore, only $12.5 million was initially expensed and the remainder of the termination fee is being amortized over the remaining initial term of the interest rate swaps to interest expense.
Changes related to SMTA
Related party fee income; Preferred dividend income from SMTA; Income tax expense
In conjunction with the
Spin-Off,
we entered into the Asset Management Agreement with SMTA pursuant to which we provided a management team responsible for implementing SMTA ’s business strategy and performing certain services for SMTA. We also provided property management services and special services for Master Trust 2014, which was contributed to SMTA as part of the
Spin-Off.
Upon SMTA’s sale of Master Trust 2014 in September 2019, both the Asset Management Agreement and the Property Management and Servicing Agreement were terminated. We simultaneously entered into the Interim Management Agreement at a reduced annual rate, under which we agreed to manage and liquidate the remaining SMTA assets until its termination effective September 4, 2020. The following table summarizes our related party fee income under these agreements:
 
    
Years Ended December 31,
 
(In Thousands)
  
2020
    
2019   
 
Management fees
(1)
  
$
678
 
  
$
15,635
 
Property management and special services fees
  
 
 
  
 
5,427
 
Termination fee related to the Asset Management Agreement
  
 
 
  
 
48,156
 
Total related party fee income
  
$
            678
 
  
$
            69,218
 
 
(1)
Includes $0.9 million of stock compensation awarded by SMTA to an employee of Spirit for the year ended December 31, 2019, which was fully offset by $0.9 million in general and administrative expenses.
Related party fee income was earned through a wholly-owned TRS and was subject to federal and state income tax. As such, the termination fee income earned in the third quarter of 2019 resulted in an increased income tax expense for the year ended December 31, 2019.
Additionally, as part of the
Spin-Off,
SMTA issued to us 10% Series A preferred shares, which generated $10.8 million of preferred dividend income for the year ended December 31, 2019. In September 2019, in conjunction with SMTA’s sale of Master Trust 2014, SMTA repurchased the preferred shares at their aggregate liquidation preference of $150.0 million.
 
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Changes related to general and administrative expenses
Year-over-year general and administrative expenses decreased by $4.0 million, driven by a decrease in compensation expenses of $4.7 million, primarily as a result of decreased accruals for market-based and merit-based compensation, as well as a $0.7 million decrease in travel expenses as a result of the
COVID-19
pandemic. Decreases year-over-year were partially offset by $1.7 million of expenses recognized during the year ended December 31, 2020 related to the
COVID-19
pandemic, mainly as a result of increased legal fees for executing rent deferral and abatement agreements.
LIQUIDITY AND CAPITAL RESOURCES
Forward equity issuance
In June 2020, we entered into forward sale agreements with certain financial institutions acting as forward purchasers in connection with an offering of 9.2 million shares of common stock at an initial public offering price of $37.35 per share, before underwriting discounts and offering expenses. The forward purchasers borrowed and sold an aggregate of 9.2 million shares of common stock in the offering. We did not receive any proceeds from the sale of our shares of common stock by the forward purchasers at the time of the offering. The forward sale price that we received upon physical settlement of the agreements, which was initially $35.856 per share, was subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchasers’ stock borrowing costs and (iii) scheduled dividends during the term of the forward sale agreements. As of December 31, 2020, we had physically settled all 9.2 million of these shares for net proceeds of $319.1 million.
ATM Program
In November 2020, the Board of Directors approved a new $500.0 million ATM program, and we terminated the 2016 ATM Program. Sales of shares of our common stock under the 2020 ATM Program may be made in sales deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act.
The 2020 ATM Program contemplates that, in addition to the issuance and sale by us of shares of our common stock to or through the agents, we may enter into separate forward sale agreements with one of the agents or one of their respective affiliates (in such capacity, each, a “forward purchaser” and, collectively, the “forward purchasers”). When we enter into a forward sale agreement with any forward purchaser, we expect that such forward purchaser will attempt to borrow from third parties and sell, through the relevant agent, acting as sales agent for such forward purchaser, shares of our common stock to hedge such forward purchaser’s exposure under such forward sale agreement. We will not initially receive any proceeds from any sale of shares of our common stock borrowed by a forward purchaser and sold through a forward seller.
We currently expect to fully physically settle any forward sale agreement with the relevant forward purchaser on one or more dates specified by us on or prior to the maturity date of such forward sale agreement, in which case we expect to receive aggregate net cash proceeds at settlement equal to the number of shares specified in such forward sale agreement multiplied by the relevant forward price per share. However, subject to certain exceptions, we may also elect, in our sole discretion, to cash settle or net share settle all or any portion of our obligations under any forward sale agreement, in which case we may not receive any proceeds (in the case of cash settlement) or will not receive any proceeds (in the case of net share settlement), and we may owe cash (in the case of cash settlement) or shares of our common stock (in the case of net share settlement) to the relevant forward purchaser.
During the year ended December 31, 2020, 7.1 million shares were sold under the ATM Programs, comprised of 3.6 million under the 2016 ATM Program and 3.5 million sold under the 2020 ATM Program. All of these sales were sold by forward purchasers through agents under the applicable ATM Program and pursuant to forward sales agreements. The forward sale price that we will receive upon physical settlement of the agreements is subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchasers’ stock borrowing costs and (iii) scheduled dividends during the term of the forward sale agreements. During the year ended December 31, 2020, 2.9 million of these shares were physically settled for net proceeds of $109.2 million. As of December 31, 2020, there were 4.1 million shares remaining under open forward sales agreements. Assuming the full physical settlement of those open forward sales agreements, we have remaining capacity of $369.7 million under the 2020 ATM Program as of December 31, 2020.
 
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Short-term liquidity and capital resources
On a short-term basis, our principal demands for funds will be for operating expenses, acquisitions, distributions to stockholders and payment of interest and principal on current and any future debt financings. We expect to fund these demands primarily through cash provided by operating activities, borrowings under the 2019 Credit Facility, and, when market conditions warrant, issuances of equity securities, including shares of our common stock under our 2020 ATM program. As of December 31, 2020, available liquidity was comprised of $70.3 million in cash and cash equivalents, $800.0 million of borrowing capacity under the 2019 Credit Facility and $13.0 million in restricted cash and restricted cash equivalents. Also, as of December 31, 2020, we had $151.5 million of expected proceeds available assuming the full physical settlement of our open forward equity contracts and remaining capacity of $369.7 million under our 2020 ATM Program. We believe that this available liquidity makes us well positioned to navigate any macroeconomic uncertainty resulting from the
COVID-19
pandemic restrictions intended to prevent its spread.
Long-term liquidity and capital resources
We plan to meet our long-term capital needs, including long-term financing of property acquisitions, by issuing registered debt or equity securities, by obtaining asset level financing and by issuing fixed-rate secured or unsecured notes and bonds. In the future, some of our property acquisitions could be made by issuing partnership interests of our Operating Partnership in exchange for property owned by third parties. These partnership interests would be exchangeable for cash or, at our election, shares of our common stock. We continually evaluate financing alternatives and believe that we can obtain financing on reasonable terms. However, we cannot be sure that we will have access to the capital markets at times and on terms that are acceptable to us. Refer to “Part I, Item 1A. Risk Factors” for additional information about the potential impact of the
COVID-19
pandemic and restrictions intended to prevent its spread on our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and make distributions to our stockholders. We expect that our primary uses of capital will be for property and other asset acquisitions, the payment of tenant improvements, operating expenses, debt service payments and distributions to our stockholders.
Description of certain debt
The following descriptions of debt should be read in conjunction with Note 4 to the consolidated financial statements herein.
2019 Credit Facility
As of December 31, 2020, the aggregate gross commitment under the 2019 Credit Facility was $800.0 million, which may be increased up to $1.2 billion by exercising an accordion feature, subject to satisfying certain requirements and obtaining additional lender commitments. The 2019 Credit Facility has a maturity of March 31, 2023 and includes two
six-month
extensions that can be exercised at our option.
We may voluntarily prepay the 2019 Credit Facility, in whole or in part, at any time without premium or penalty. Payment of the 2019 Credit Facility is unconditionally guaranteed by the Company and material subsidiaries that meet certain conditions (as defined in the 2019 Facilities Agreements). As of December 31, 2020, there were no subsidiaries that met this requirement.
As of December 31, 2020, the 2019 Credit Facility bore interest at
1-Month
LIBOR plus 0.90%, with no borrowings outstanding, and a ratings-based facility fee in the amount of 0.20% per annum. As of December 31, 2020, there were no letters of credit outstanding.
Amounts available for borrowing under the 2019 Credit Facility remained subject to compliance with certain customary restrictive covenants including:
 
   
Maximum leverage ratio (defined as consolidated total indebtedness of the Company, net of certain cash and cash equivalents, to total asset value) of 0.60:1.00;
 
   
Minimum fixed charge coverage ratio (defined as EBITDA of the Company, to fixed charges) of 1.50:1.00;
 
   
Maximum secured indebtedness leverage ratio (defined as consolidated secured indebtedness of the Company, net of certain cash and cash equivalents, to total asset value) of 0.50:1:00;
 
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Minimum unsecured interest coverage ratio (defined as consolidated net operating income from unencumbered properties, to unsecured interest expense) of 1.75:1.00; and
 
   
Maximum unencumbered leverage ratio (defined as consolidated unsecured indebtedness of the Company, net of certain cash and cash equivalents, to total unencumbered asset value) of 0.60:1:00.
In addition to these covenants, the 2019 Credit Agreement also included other customary affirmative and negative covenants, such as (i) limitation on liens and negative pledges; (ii) transactions with affiliates; (iii) limitation on mergers, consolidations and sales of all or substantially all assets; (iv) maintenance of status as a REIT and listing on any national securities exchange; and (v) material modifications to organizational documents. As of December 31, 2020, the Corporation and the Operating Partnership were in compliance with these covenants.
2020 Term Loans
As of December 31, 2020, $178.0 million was outstanding under the 2020 Term Loan Agreement. On January 4, 2021, we repaid the 2020 Term Loans in full. The 2020 Term Loans had a maturity of April 2, 2022 and bore interest at a rate of LIBOR plus an applicable margin of 1.50% per annum.
Senior Unsecured Notes
As of December 31, 2020, we had the following Senior Unsecured Notes outstanding (dollars in thousands):
 
    
Maturity Date
  
  Stated Interest  
Rate
   
  December 31,  
2020
 
2026 Senior Notes
  
September 15, 2026
  
 
4.45
 
$
300,000
 
2027 Senior Notes
  
January 15, 2027
  
 
3.20
 
$
300,000
 
2029 Senior Notes
  
July 15, 2029
  
 
4.00
 
$
400,000
 
2030 Senior Notes
  
January 15, 2030
  
 
3.40
 
$
500,000
 
2031 Senior Notes
  
February 15, 2031
  
 
3.20
 
$
450,000
 
Total Senior Unsecured Notes
  
 
  
 
3.61
 
$
  1,950,000
 
Interest on the Senior Unsecured Notes is payable on January 15 and July 15 of each year, except for the 2026 Senior Notes, for which interest is payable on March 15 and September 15 of each year, and the 2031 Senior Notes, for which interest is payable on February 15 and August 15 of each year. The Senior Unsecured Notes are redeemable in whole at any time or in part from time to time, at the Operating Partnership’s option, at a redemption price equal to the sum of: an amount equal to 100% of the principal amount of the respective Senior Unsecured Notes to be redeemed plus accrued and unpaid interest and liquidated damages, if any, up to, but not including, the redemption date; and a make-whole premium calculated in accordance with the respective indenture. Notwithstanding the foregoing, if any of the Senior Unsecured Notes are redeemed three months or less (or two months or less in the case of the 2027 Senior Notes) prior to their respective maturity dates, the redemption price will not include a make-whole premium.
The indentures governing the Senior Unsecured Notes subject the Corporation and Operating Partnership to certain customary restrictive covenants that limit their ability to incur additional indebtedness, including:
 
   
Maximum leverage ratio (defined as consolidated total indebtedness, to total consolidated undepreciated real estate assets plus the Company’s other assets, excluding accounts receivable and
non-real
estate intangibles) of 0.60:1.00;
 
   
Minimum unencumbered asset coverage ratio (defined as total consolidated undepreciated real estate assets plus the Company’s other assets, excluding accounts receivable and
non-real
estate intangibles, to consolidated total unsecured indebtedness) of 1.50:1:00;
 
   
Maximum secured indebtedness leverage ratio (defined as consolidated total secured indebtedness, to total consolidated undepreciated real estate assets plus the Company’s other assets, excluding accounts receivable and
non-real
estate intangibles) of 0.40:1.00; and
 
   
Minimum fixed charge coverage ratio (defined as consolidated income available for debt service, to the annual service charge) of 1.50:1.0.
 
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The indentures governing the Senior Unsecured Notes also include other customary affirmative and negative covenants, including (i) maintenance of the Corporation’s existence; (ii) payment of all taxes, assessments and governmental charges levied against the Corporation; (iii) reporting on financial information; and (iv) maintenance of properties and insurance. As of December 31, 2020, the Corporation and the Operating Partnership were in compliance with these covenants.
CMBS
In general, the obligor of our asset level debt is a special purpose entity that holds the real estate and other collateral securing the indebtedness. Each special purpose entity is a bankruptcy remote separate legal entity and is the sole owner of its assets and solely responsible for its liabilities other than typical
non-recurring
covenants.
As of December 31, 2020, we had five fixed-rate CMBS loans with $214.2 million of aggregate outstanding principal, a weighted-average contractual interest rate of 5.47% and a weighted-average maturity of 2.8 years. Approximately 86.93% of this debt is partially amortizing and requires a balloon payment at maturity. The following table shows the scheduled principal repayments, including amortization, of the CMBS fixed-rate loans as of December 31, 2020 (dollars in thousands):
 
Year of Maturity
  
Number of  
Loans  
    
    Number of  
    Properties  
    
    Stated Interest    
    Rate Range    
  
Weighted
Average Stated
Rate
   
Scheduled
Principal
    
Balloon
    
Total
 
2021
  
 
 
  
 
 
  
—%
  
 
 
    $
4,365
 
  
    $
 
  
    $
4,365
 
2022
  
 
 
  
 
 
  
—%
  
 
 
 
 
4,617
 
  
 
 
  
 
4,617
 
2023
  
 
3
 
  
 
86
 
  
5.23%-5.50%
  
 
5.46
 
 
 
3,074
 
  
 
197,912
 
  
 
200,986
 
2024
  
 
 
  
 
 
  
—%
  
 
 
 
 
590
 
  
 
 
  
 
590
 
2025
  
 
1
 
  
 
1
 
  
6.00%
  
 
6.00
 
 
 
610
 
  
 
16
 
  
 
626
 
Thereafter
  
 
1
 
  
 
1
 
  
5.80%
  
 
5.80
 
 
 
3,000
 
  
 
53
 
  
 
3,053
 
Total
  
 
5
 
  
 
88
 
  
 
  
 
5.47
 
    $
      16,256
 
  
    $
    197,981
 
  
    $
    214,237
 
Convertible Notes
As of December 31, 2020, the Convertible Notes were comprised of $190.4 million aggregate principal amount of 3.75% convertible notes maturing on May 15, 2021. Interest on the 2021 Notes is payable semi-annually in arrears on May 15 and November 15 of each year.
Holders may convert the 2021 Notes prior to November 15, 2020 only under specific circumstances: (i) if the closing price of our common stock for each of the last 20 trading days (whether or not consecutive) during the last 30 consecutive trading days in the quarter is greater than or equal to 130% of the conversion price for the Convertible Notes; (ii) during the five business day period after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last closing price of our common stock and the conversion rate for the Convertible Notes; (iii) if we call any or all of the Convertible Notes for redemption prior to the redemption date; or (iv) upon the occurrence of specified corporate events as described in the Convertible Notes prospectus supplement. From November 15, 2020 to the close of business on the second scheduled trading day immediately preceding the maturity date of the 2021 Notes, holders may convert the 2021 Notes at any time, regardless of the foregoing circumstances. Upon conversion, we will pay or deliver cash, shares of common stock or a combination of cash and shares of common stock, at our election.
The conversion rate is subject to adjustment for some events, including dividends paid in excess of threshold amounts stipulated in the agreement, but will not be adjusted for any accrued and unpaid interest. As of December 31, 2020, the conversion rate was 17.4458 per $1,000 principal note. If we undergo a fundamental change (as defined in the 2021 Notes’ supplemental indenture), holders may require us to repurchase all or any portion of their notes at a repurchase price equal to 100% of the principal amount of such notes to be repurchased, plus accrued and unpaid interest.
 
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Debt Maturities
Future principal payments due on our various types of debt outstanding as of December 31, 2020 (in thousands):
 
   
Total
   
2021
   
2022
   
2023
   
2024
   
2025
   
Thereafter
 
2019 Credit Facility
 
$
 
 
$
 
 
$
 
 
$
 
 
$
 
 
$
 
 
$
 
2020 Term Loans
 
 
178,000
 
 
 
 
 
 
178,000
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Unsecured Notes
 
 
1,950,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,950,000
 
CMBS
 
 
214,237
 
 
 
4,365
 
 
 
4,617
 
 
 
200,986
 
 
 
590
 
 
 
626
 
 
 
3,053
 
Convertible Notes
 
 
190,426
 
 
 
190,426
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
  2,532,663
 
 
$
  194,791
 
 
$
  182,617
 
 
$
  200,986
 
 
$
  590
 
 
$
  626
 
 
$
  1,953,053
 
Contractual Obligations
The following table provides information with respect to our commitments, including acquisitions under contract, as of December 31, 2020 (in thousands):
 
Contractual Obligations
  
Payment due by period
 
    
Total
    
Less than 1 year
    
1-3
years
    
3-5
years
    
More than 5 years
 
Debt - Principal
  
$
2,532,663
 
  
$
194,791
 
  
$
383,603
 
  
$
1,216
 
  
$
1,953,053
 
Debt - Interest
 (1)
  
 
606,997
 
  
 
85,958
 
  
 
160,908
 
  
 
141,125
 
  
 
219,006
 
Acquisitions Under Contract
 (2)
  
 
47,985
 
  
 
47,985
 
  
 
 
  
 
 
  
 
 
Capital Improvements
  
 
12,655
 
  
 
12,404
 
  
 
251
 
  
 
 
  
 
 
Operating Lease Obligations
  
 
7,818
 
  
 
1,301
 
  
 
2,457
 
  
 
2,476
 
  
 
1,584
 
Total
  
$
  3,208,118
 
  
$
  342,439
 
  
$
  547,219
 
  
$
  144,817
 
  
$
  2,173,643
 
 
(1) 
Debt - Interest has been calculated based on outstanding balances as of December 31, 2020 through their respective maturity dates and excludes unamortized
non-cash
deferred financing costs of $18.5 million and unamortized debt discount, net of $7.8 million.
 
(2) 
Contracts contain standard cancellation clauses contingent on results of due diligence.
Distribution Policy
Distributions from our current or accumulated earnings are generally classified as ordinary income, whereas distributions in excess of our current and accumulated earnings, to the extent of a stockholder’s federal income tax basis in our common stock, are generally characterized as a return of capital. Under the 2017 Tax Legislation, U.S. stockholders that are individuals, trusts and estates generally may deduct up to 20% of the ordinary dividends (e.g., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning after December 31, 2017 and before January 1, 2026. Distributions in excess of a stockholder’s federal income tax basis in our common stock are generally characterized as capital gain.
We are required to distribute 90% of our taxable income (subject to certain adjustments and excluding net capital gains) on an annual basis to maintain qualification as a REIT for federal income tax purposes and are required to pay federal income tax at regular corporate rates to the extent we distribute less than 100% of our taxable income (including capital gains).
We intend to make distributions that will enable us to meet the distribution requirements applicable to REITs and to eliminate or minimize our obligation to pay corporate-level federal income and excise taxes.
Any distributions will be at the sole discretion of our Board of Directors, and their form, timing and amount, if any, will depend upon a number of factors, including our actual and projected results of operations, FFO, liquidity, cash flows and financial condition, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, our REIT taxable income, the annual REIT distribution requirements, applicable laws and such other factors as our Board of Directors deems relevant. Refer to “Part I, Item 1A. Risk Factors” for additional information about the potential impact of the
COVID-19
pandemic and restrictions intended to prevent its spread on our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and make distributions to our stockholders.
 
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CASH FLOWS
In this section, we discuss our cash flows for the year ended December 31, 2020 compared to the year ended December 31, 2019. For a discussion of the year ended December 31, 2019 compared to the year ended December 31, 2018, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form
10-K
for the year ended December 31, 2019.
The following table presents a summary of our cash flows for the years ended December 31, 2020 and 2019 (in thousands):
 
    
Years Ended December 31,
       
    
2020
   
2019
   
Change
 
Net cash provided by operating activities
  
$
      314,312
 
 
$
      339,053
 
 
$
(24,741
Net cash used in investing activities
  
 
(747,750
 
 
(894,999
 
 
      147,249
 
Net cash provided by financing activities
  
 
490,713
 
 
 
504,548
 
 
 
(13,835
Net increase (decrease) in cash, cash equivalents and restricted cash
  
$
57,275
 
 
$
(51,398
 
$
108,673
 
As of December 31, 2020, we had $83.3 million of cash, cash equivalents, and restricted cash as compared to $26.0 million as of December 31, 2019.
Operating Activities
Our cash flows from operating activities are primarily dependent upon the occupancy level of our portfolio, the rental rates specified in our leases, the collectability of rent and the level of our operating expenses and other general and administrative costs.
The decrease in net cash provided by operating activities was primarily attributable to the following:
   
a decrease in related party fee income of $70.5 million, which was primarily attributable to the $48.2 million termination fee received in connection with the termination of the Asset Management Agreement in September 2019, which was replaced by the Interim Management Agreement,
   
a decrease in preferred dividends received from SMTA of $14.6 million as a result of SMTA repurchasing the preferred shares in September 2019, and
   
an increase in cash interest paid of $9.4 million driven by the issuance of the 2027 Senior Notes, 2029 Senior Notes, 2030 Senior Notes, and 2031 Senior Notes.
The decrease was partially offset by the following:
   
termination fee costs of $24.8 million paid for the termination of interest rate swaps in 2019,
   
a decrease in cash taxes paid of $11.0 million primarily driven by the net decrease in taxable income in 2020 and sale of MTA, and
   
a net increase in cash rental revenue of $30.2 million, driven by net acquisitions over the trailing twelve month period, partially offset by $26.3 million of rent deferred and $6.3 million of rent abated during the year ended December 31, 2020 as a result of the
COVID-19
pandemic.
Investing Activities
Cash used in investing activities is generally used to fund property acquisitions, for investments in loans receivable and for capital expenditures. Cash provided by investing activities generally relates to the disposition of real estate and other assets.
Net cash used in investing activities during the year ended December 31, 2020 included $867.5 million for the acquisition of 146 properties and $12.7 million of capitalized real estate expenditures. These outflows were partially offset by $100.6 million in net proceeds from the disposition of 38 properties and the sale of one loan receivable. Additionally, the outflows were further offset by the collection of $31.8 million of principal on loans receivable, which includes $28.7 million for the paydown of the outstanding loan balances.
During the same period in 2019, net cash used in investing activities included $1.3 billion for the acquisition of 334 properties and $47.7 million of capitalized real estate expenditures. These outflows were partially offset by
 
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$253.6 million in net proceeds from the disposition of 44 properties, $150.0 million in proceeds from redemption of preferred equity investment in SMTA, $33.5 million in collections of the Master Trust Notes and $11.0 million in collections of principal on loans receivable and real estate assets under direct financing leases.
Financing Activities
Generally, our net cash provided by or used in financing activities is impacted by our borrowings under our revolving credit facilities and term loans, issuances of
net-lease
mortgage notes, common stock and debt offerings and repurchases and dividend payments on our common and preferred stock.
Net cash provided by financing activities during the year ended December 31, 2020 was primarily attributable to borrowings of $445.5 million under senior unsecured notes, net proceeds from the issuance of common stock of $428.3 million and net borrowings of $178.0 million under term loans. These amounts were partially offset by payment of dividends to equity owners of $270.8 million, repayment of $154.6 million on convertible notes, net repayments of $116.5 million on our revolving credit facilities, deferred financing costs of $6.6 million, common stock repurchases for employee tax withholdings totaling $4.4 million, repayment of $4.1 million on mortgages and notes payable and debt extinguishment costs of $4.0 million.
During the same period in 2019, net cash provided by financing activities was primarily attributable to borrowings of $1.2 billion under senior unsecured notes and net proceeds from the issuance of common stock of $677.4 million. These amounts were partially offset by net payments on the convertible notes, term loans, mortgages and notes payable, and revolving credit facilities of $402.5 million, $420.0 million, $242.0 million, and $29.8 million, respectively. Additionally, there were debt extinguishment costs of $15.3 million and deferred financing costs of $22.1 million during 2019. Payment of dividends to equity owners during 2019 was $236.9 million, and the common stock share repurchase for employee tax withholdings totaled $2.5 million.
Non-GAAP
Financial Measures
FFO AND AFFO
We calculate FFO in accordance with the standards established by NAREIT. FFO represents net income (loss) attributable to common stockholders (computed in accordance with GAAP), excluding real estate-related depreciation and amortization, impairment charges and net (gains) losses from property dispositions. FFO is a supplemental
non-GAAP
financial measure. We use FFO as a supplemental performance measure because we believe that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate-related depreciation and amortization, gains and losses from property dispositions and impairment charges, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO will be used by investors as a basis to compare our operating performance with that of other equity REITs. However, because FFO excludes depreciation and amortization and does not capture the changes in the value of our properties that result from use or market conditions, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited.
AFFO is a
non-GAAP
financial measure of operating performance used by many companies in the REIT industry. We adjust FFO to eliminate the impact of certain items that we believe are not indicative of our core operating performance, such as transactions costs associated with our
Spin-Off,
default interest and fees on
non-recourse
mortgage indebtedness, debt extinguishment gains (losses), costs associated with termination of interest rate swaps, costs associated with performing on a guarantee of a former tenant’s debt, and certain
non-cash
items. These certain
non-cash
items include
non-cash
revenues (comprised of straight-line rents net of bad debt expense, amortization of lease intangibles, and amortization of net premium/discount on loans receivable),
non-cash
interest expense (comprised of amortization of deferred financing costs and amortization of net debt discount/premium) and
non-cash
compensation expense.
 
 
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Other equity REITs may not calculate FFO and AFFO as we do, and, accordingly, our FFO and AFFO may not be comparable to such other equity REITs’ FFO and AFFO. FFO and AFFO do not represent cash generated from operating activities determined in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should only be considered a supplement, and not an alternative, to net income (loss) attributable to common stockholders (computed in accordance with GAAP) as a performance measure.
Adjusted Debt
Adjusted Debt represents interest bearing debt (reported in accordance with GAAP) adjusted to exclude unamortized debt discount/premium, deferred financing costs, and reduced by cash and cash equivalents and cash reserves on deposit with lenders as additional security. By excluding these amounts, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. We believe this calculation constitutes a beneficial supplemental
non-GAAP
financial disclosure to investors in understanding our financial condition.
EBITDA
re,
Adjusted EBITDA
re
and Annualized Adjusted EBITDA
re
EBITDAre is a
non-GAAP
financial measure and is computed in accordance with standards established by NAREIT. EBITDAre is computed as net income (loss) (computed in accordance with GAAP), plus interest expense, plus income tax expense (if any), plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairments of depreciated property.
Adjusted EBITDAre represents EBITDAre as adjusted for revenue producing acquisitions and dispositions for the quarter as if such acquisitions and dispositions had occurred as of the beginning of the quarter and for certain items that we believe are not indicative of our core operating performance, such as transactions costs associated with our
Spin-Off,
debt extinguishment gains (losses), and costs associated with performing on a guarantee of a former tenant’s debt. We focus our business plans to enable us to sustain increasing shareholder value. Accordingly, we believe that excluding these items, which are not key drivers of our investment decisions and may cause short-term fluctuations in net income, provides a useful supplemental measure to investors and analysts in assessing the net earnings contribution of our real estate portfolio. Because these measures do not represent net income (loss) that is computed in accordance with GAAP, they should only be considered a supplement, and not an alternative, to net income (loss) (computed in accordance with GAAP) as a performance measure.
Annualized Adjusted EBITDAre is calculated as Adjusted EBITDAre for the quarter, adjusted for amounts deemed not probable of collection (recoveries) for straight-line rent related to prior periods and items where annualization would not be appropriate, multiplied by four. Our computation of Adjusted EBITDAre and Annualized Adjusted EBITDAre may differ from the methodology used by other equity REITs to calculate these measures and, therefore, may not be comparable to such other REITs.
Adjusted Debt to Annualized Adjusted EBITDA
re
Adjusted Debt to Annualized Adjusted EBITDAre is a supplemental
non-GAAP
financial measure we use to evaluate the level of borrowed capital being used to increase the potential return of our real estate investments, and a proxy for a measure we believe is used by many lenders and ratings agencies to evaluate our ability to repay and service our debt obligations over time. We believe the ratio is a beneficial disclosure to investors as a supplemental means of evaluating our ability to meet obligations senior to those of our equity holders. Our computation of this ratio may differ from the methodology used by other equity REITs, and, therefore, may not be comparable to such other REITs. A reconciliation of interest-bearing debt (computed in accordance with GAAP) to Adjusted Debt is included in the financial information accompanying this report.
 
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FFO and AFFO
 
   
Years Ended December 31,
 
(Dollars in thousands, except per share data)
 
 
2020
 
 
 
2019
 
 
 
2018
 
Net income attributable to common stockholders
 
$
16,358
 
 
$
164,916
 
 
$
121,700
 
Portfolio depreciation and amortization
 
 
212,038
 
 
 
174,895
 
 
 
197,346
 
Portfolio impairments
 
 
81,476
 
 
 
24,091
 
 
 
17,668
 
Gain on disposition of assets
 
 
(24,156
 
 
(58,850
 
 
(14,355
FFO attributable to common stockholders
 
$
285,716
 
 
$
305,052
 
 
$
322,359
 
Loss (gain) on debt extinguishment
 
 
7,227
 
 
 
14,330
 
 
 
(26,729
Deal pursuit costs
 
 
2,432
 
 
 
844
 
 
 
549
 
Transaction costs
 
 
 
 
 
 
 
 
21,391
 
Non-cash
interest expense
 
 
12,428
 
 
 
14,175
 
 
 
22,866
 
Accrued interest and fees on defaulted loans
 
 
 
 
 
285
 
 
 
1,429
 
Straight-line rent, net of related bad debt expense
 
 
(11,876
 
 
(16,924
 
 
(15,382
Other amortization and
non-cash
charges
 
 
(918
 
 
(2,769
 
 
(2,434
Swap termination costs
 
 
 
 
 
12,461
 
 
 
 
Non-cash
compensation expense
 
 
12,640
 
 
 
14,277
 
 
 
15,114
 
Other G&A costs associated with
Spin-Off
 
 
 
 
 
 
 
 
1,841
 
Other expense
 
 
 
 
 
 
 
 
5,319
 
Costs related to
COVID-19
 (1)
 
 
1,798
 
 
 
 
 
 
 
AFFO attributable to common stockholders
 (2)
 
$
309,447
 
 
$
341,731
 
 
$
346,323
 
     
Net income per share of common stock - diluted
 
$
0.15
 
 
$
1.81
 
 
$
1.39
 
     
FFO per share of common stock - diluted
 (3)
 
$
2.73
 
 
$
3.34
 
 
$
3.71
 
     
AFFO per share of common stock - diluted
 (3)
 
$
2.95
 
 
$
3.75
 
 
$
3.99
 
     
AFFO per share of common stock, excluding AM termination fee and Haggen settlement
 (3)(4)
 
$
2.95
 
 
$
3.34
 
 
$
3.78
 
     
Weighted average shares of common stock outstanding - diluted
 
 
104,535,384
 
 
 
90,869,312
 
 
 
86,476,449
 
 
(1) 
Costs related to
COVID-19
are included in general and administrative expense and primarily relate to legal fees for executing rent deferral or abatement agreements.
 
(2) 
AFFO for the year ended December 31, 2020 includes $26.3 million of deferred rental income recognized in conjunction with the FASB’s relief for deferral agreements extended as a result of the
COVID-19
pandemic.
 
(3) 
Dividends paid and undistributed earnings allocated, if any, to unvested restricted stockholders are deducted from FFO and AFFO for the computation of the per share amounts. The following amounts were deducted:
 
    
Years Ended December 31,
 
    
2020
    
2019
    
2018
 
FFO    $ 0.8 million      $ 1.2 million      $ 1.4 million  
AFFO    $ 0.9 million      $ 1.4 million      $ 1.5 million  
 
(4)
 
AFFO attributable to common stockholders for the year ended December 31, 2019, excluding $48.2 million of termination fee income, net of $11.3 million in income tax expense. The termination fee was received in conjunction with SMTA’s sale of Master Trust 2014 in September 2019 and termination of the Asset Management Agreement on September 20, 2019. AFFO attributable to common stockholders has not been adjusted to exclude the following amounts for the year ended December 31, 2019: (i) asset management fees of $14.7 million; (ii) property management and servicing fees of $5.4 million; (iii) preferred dividend income from SMTA $10.8 million; (iv) interest income on related party notes receivable of $1.1 million and an early repayment premium of $0.9 million; and (v) interest expense on related party loans payable of $0.2 million.
 
  
AFFO attributable to common stockholders for the year ended December 31, 2018 excludes proceeds from the Haggen settlement of $19.1 million.
 
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Adjusted Debt, Adjusted EBITDAre and Annualized Adjusted EBITDAre
 
    
December 31,
 
(Dollars in thousands)
  
2020
   
2019
 
Revolving credit facilities
  
$
 
 
$
116,500
 
Term loans
  
 
177,309
 
 
 
 
Senior Unsecured Notes, net
  
 
1,927,348
 
 
 
1,484,066
 
Mortgages and notes payable, net
  
 
212,582
 
 
 
216,049
 
Convertible Notes, net
  
 
189,102
 
 
 
336,402
 
Total debt, net
  
 
2,506,341
 
 
 
2,153,017
 
Unamortized debt discount, net
  
 
7,807
 
 
 
9,272
 
Unamortized deferred financing costs
  
 
18,515
 
 
 
17,549
 
Cash and cash equivalents
  
 
(70,303
 
 
(14,492
Restricted cash balances held for the benefit of lenders
  
 
(12,995
 
 
(11,531
Adjusted Debt
  
$
        2,449,365
 
 
$
        2,153,815
 
 
    
Three Months
Ended December 31,
 
(Dollars in thousands)
  
2020
   
2019
 
Net income
  
$
29,170
 
 
$
4,657
 
Interest
  
 
26,307
 
 
 
24,598
 
Depreciation and amortization
  
 
55,054
 
 
 
48,867
 
Income tax benefit
  
 
(133
 
 
(229
(Gain) loss on disposition of assets
  
 
(12,347
 
 
11,910
 
Portfolio impairments
  
 
11,547
 
 
 
10,860
 
EBITDA
re
  
$
        109,598
 
 
$
        100,663
 
Adjustments to revenue producing acquisitions and dispositions
  
 
4,596
 
 
 
6,881
 
Deal pursuit costs
  
 
802
 
 
 
270
 
(Gain) loss on debt extinguishment
  
 
(25
 
 
2,857
 
Costs related to
COVID-19
 (1)
  
 
358
 
 
 
 
Adjusted EBITDA
re
  
$
115,329
 
 
$
110,671
 
Adjustments related to straight-line rent
(2)
  
 
(506
 
 
 
Other adjustments for Annualized Adjusted EBITDA
re
(3)
  
 
397
 
 
 
58
 
Annualized Adjusted EBITDA
re
  
$
460,880
 
 
$
442,916
 
Adjusted Debt / Annualized Adjusted EBITDA
re
 (4)
  
 
5.3x
 
 
 
4.9x
 
 
(1)
 
Costs related to
COVID-19
are included in general and administrative expense and primarily relate to legal fees for executing rent deferral or abatement agreements.
 
(2)
 
Adjustment relates to recoveries on straight-line rent receivable balances deemed not probable of collection in previous periods.
 
(3)
 
Adjustments for the three months ended December 31, 2020 for amounts where annualization would not be appropriate are comprised of certain recoveries related to prior period amounts (rent deemed not probable of collection, abatements, property costs and tax expenses) and certain general and administrative expenses. For the same period in 2019, adjustments are composed of certain other income,
write-off
of intangibles and other compensation-related adjustments where annualization would not be appropriate.
 
(4)
 
Adjusted Debt / Annualized Adjusted EBITDA
re
would be 5.0x if the 4.1 million shares under open forward sales agreements had been settled as of December 31, 2020.
 
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Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to financial market risks, including interest rate risk. Interest rates and other factors, such as occupancy, rental rates and the financial condition of our tenants, influence our performance more so than does inflation. Changes in interest rates do not necessarily correlate with inflation rates or changes in inflation rates. As described above, we generally offer leases that provide for payments of base rent with scheduled increases and, to a lesser extent, contingent rent based on a percentage of the tenant’s gross sales to help mitigate the effect of inflation. Because the properties in our portfolio are generally leased to tenants under
triple-net
leases, our exposure to rising property operating costs due to inflation is mitigated.
Interest rates are highly sensitive to many factors, including governmental monetary policies and domestic and global economic and political conditions, which are beyond our control. Our operating results depend heavily on the difference between the revenue from our assets and the interest expense incurred on our borrowings. We may incur additional variable rate debt in the future, including amounts that we may borrow under our 2019 Credit Facility. In addition, decreases in interest rates may lead to additional competition for the acquisition of real estate due to a reduction in desirable alternative income-producing investments, which may lead to a decrease in the yields on real estate we have targeted for acquisition. In such circumstances, if we are not able to offset the decrease in yields by obtaining lower interest costs on our borrowings, our results of operations will be adversely affected. Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to acquire real estate with rental rates high enough to offset the increase in interest rates on our borrowings.
In the event interest rates rise significantly or there is an economic downturn, defaults may increase and result in credit losses, which may adversely affect our liquidity and operating results. In a decreasing interest rate environment, borrowers are generally more likely to prepay their loans in order to obtain financing at lower interest rates. However, the vast majority of our mortgage notes payable have prepayment clauses that make refinancing during a decreasing interest rate environment uneconomical.
As of December 31, 2020, our assets were primarily long-term, fixed-rate leases (though most have scheduled rental increases during the terms of the leases). As of December 31, 2020, $2.4 billion of our indebtedness outstanding was fixed-rate, consisting of our Senior Unsecured Notes, mortgages and notes payable and Convertible Notes, with a weighted average stated interest rate of 3.79%, excluding amortization of deferred financing costs and debt discounts/premiums. As of December 31, 2020, $178.0 million of our indebtedness was variable-rate, consisting of our 2020 Term Loans with a stated interest rate of 1.65%. There were no borrowings outstanding under our 2019 Credit Facility at December 31, 2020. If
one-month
LIBOR as of December 31, 2020 increased by 12.5 basis points, or 0.125%, the resulting increase in annual interest expense with respect to the $178.0 million outstanding under the variable-rate obligations would impact our future earnings and cash flows by $0.2 million.
The estimated fair values of our debt instruments have been derived based on market quotes for comparable instruments or discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates and credit spreads. The debt instrument balances as of December 31, 2020 are as follows (in thousands):
 
    
Carrying
Value
    
Estimated
Fair Value
 
2019 Credit Facility
  
$
 
  
$
—  
 
2020 Term Loans, net
 (1)
  
 
177,309
 
  
 
177,884  
 
Senior Unsecured Notes, net
 (1)
  
 
        1,927,348
 
  
 
            2,122,409  
 
Mortgages and notes payable, net 
(1)
  
 
212,582
 
  
 
226,240  
 
Convertible Notes, net 
(1)
  
 
189,102
 
  
 
194,124  
 
 
 
 
(1)
 
The carrying value of the debt instruments are net of unamortized deferred financing costs and certain debt discounts/premiums.
 
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Item 8.
Financial Statements and Supplementary Data
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 
Financial Statements and Supplemental Data
  
 
 
  
       54  
       61  
  Consolidated Statements of Operations of Spirit Realty Capital, Inc. for the Years Ended December 31, 2020, 2019 and 2018      62  
  Consolidated Statements of Comprehensive Income of Spirit Realty Capital, Inc. for the Years Ended December 31, 2020, 2019 and 2018      63  
  Consolidated Statements of Stockholders’ Equity of Spirit Realty Capital, Inc. for the Years Ended December 31, 2020, 2019 and 2018      64  
  Consolidated Statements of Cash Flows of Spirit Realty Capital, Inc. for the Years Ended December 31, 2020, 2019 and 2018      65  
       67  
  Consolidated Statements of Operations of Spirit Realty, L.P. for the Years Ended December 31, 2020, 2019 and 2018      68  
  Consolidated Statements of Comprehensive Income of Spirit Realty, L.P. for the Years Ended December 31, 2020, 2019 and 2018      70  
  Consolidated Statements of Partners’ Capital of Spirit Realty, L.P. for the Years Ended December 31, 2020, 2019 and 2018      71  
  Consolidated Statements of Cash Flows of Spirit Realty, L.P. for the Years Ended December 31, 2020, 2019 and 2018      72  
       74  
 
 
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Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of
Spirit Realty Capital, Inc.
Opinion on Internal Control over Financial Reporting
We have audited Spirit Realty Capital, Inc.’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Spirit Realty Capital, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2020 consolidated financial statements of the Company and our report dated February 19, 2021 expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Dallas, Texas
February 19, 2021
 
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Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of
Spirit Realty Capital, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Spirit Realty Capital, Inc. (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 19, 2021 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
 
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Evaluation of Impairment on Real Estate Investments Held and Used
 
Description of the Matter
  
At December 31, 2020, the Company’s real estate investments (land, building, and improvements) held and used totaled $5.5 billion. As discussed in Note 2 to the consolidated financial statements, the Company reviews its real estate investments held and used periodically for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers factors such as expected future undiscounted cash flows, estimated residual value, and market trends (such as the effects of leasing demand and competition) in assessing recoverability of these investments. Key assumptions used in estimating future cash flows and fair values include recently quoted bid or ask prices, market prices of comparable investments, contractual and comparable market rents, leasing assumptions, capitalization rates, and expectations for the use of the asset. A real estate investment held and used is considered impaired if its carrying value exceeds its estimated undiscounted cash flows, and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value.
  
Auditing management’s evaluation of impairment on real estate investments held and used is judgmental due to the estimation required in determining undiscounted cash flows that can be generated from the investment and determining estimated fair value when the investment is not deemed recoverable from those estimated future cash flows. In particular, the impairment evaluation is sensitive to the investment’s estimated residual value that is derived from the key assumptions stated above, which can be affected by expectations about future market or economic conditions, demand, and competition.
How We Addressed
the Matter in Our
Audit
  
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s impairment evaluation process. This included controls over management’s review of the key assumptions underlying the undiscounted cash flows and the fair value determination. To test the Company’s evaluation of impairment of real estate investments, we performed audit procedures that included, among others, testing the key assumptions used by management in its recoverability analysis and in determining the fair value of investments that were impaired. We compared the key assumptions to observable market transaction information published by independent industry research sources to assess whether the assumptions were market supported. We involved a valuation specialist to assist in evaluating the key assumptions listed above. As part of our evaluation, we assessed the historical accuracy of management’s estimates and performed sensitivity analyses of key assumptions to evaluate the changes in the valuation of certain properties that would result from changes in the assumptions or using alternative valuation techniques.
 
In addition, we performed procedures to evaluate the completeness and accuracy of the data utilized in management’s impairment analysis. We also assessed information and events subsequent to the balance sheet date, if any, to corroborate certain of the key assumptions used by management.
 
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Collectability of Lease Payments
 
Description of the Matter
  
The Company recorded $479.9 million in rental income for the year ended December 31, 2020. As discussed in Note 2 to the consolidated financial statements, the Company evaluates the collectability of lease payments on a regular basis. The Company considers certain key factors in assessing collectability, including: tenant’s payment history and financial condition, business conditions in the industry in which the tenant operates, economic conditions of the geographic location in which the tenant operates, as well as other relevant tenant specific circumstances.
 
Auditing management’s evaluation of collectability of lease payments requires judgement as the assessment is based on tenant specific circumstances and expectations of future economic and market conditions. In particular, the longer-term nature of repayments of
COVID-19
induced deferrals, the absence of cash receipts during the deferral period, and the current market environment requires the judgement of management in evaluating the collectability of billed and unbilled tenant receivables. Given the tenant specific nature of this evaluation and the uncertainty associated with future economic and market conditions, the related reserves against revenue are sensitive to the economic and geographic considerations of individual tenants described above and management’s judgment in evaluating the collectability conclusion.
How We Addressed
the Matter in Our
Audit
  
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s lease payment collectability process. To test the Company’s assessment of collectability, our audit procedures included, among others, evaluating tenant specific financial information, current and historical tenant payment collection, and changes in the collectability conclusions made during the year.
 
In addition, we tested the completeness and accuracy of the data used in management’s collectability analysis. We also assessed information and events subsequent to the balance sheet date, if any, to corroborate certain of the key assumptions used by management.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2003.
Dallas, Texas
February 19, 2021
 
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Report of Independent Registered Public Accounting Firm
To the Partners of Spirit Realty, L.P. and the Board of Directors of
Spirit Realty Capital, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Spirit Realty, L.P. (the Operating Partnership) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, partners’ capital and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on the Operating Partnership’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Operating Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
 
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Evaluation of Impairment on Real Estate Investments Held and Used
 
Description of the Matter
  
At December 31, 2020, the Operating Partnership’s real estate investments (land, building, and improvements) held and used totaled $5.5 billion. As discussed in Note 2 to the consolidated financial statements, the Operating Partnership reviews its real estate investments held and used periodically for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Operating Partnership considers factors such as expected future undiscounted cash flows, estimated residual value, and market trends (such as the effects of leasing demand and competition) in assessing recoverability of these investments. Key assumptions used in estimating future cash flows and fair values include recently quoted bid or ask prices, market prices of comparable investments, contractual and comparable market rents, leasing assumptions, capitalization rates, and expectations for the use of the asset. A real estate investment held and used is considered impaired if its carrying value exceeds its estimated undiscounted cash flows, and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value.
  
Auditing management’s evaluation of impairment on real estate investments held and used is judgmental due to the estimation required in determining undiscounted cash flows that can be generated from the investment and determining estimated fair value when the investment is not deemed recoverable from those estimated future cash flows. In particular, the impairment evaluation is sensitive to the investment’s estimated residual value that is derived from the key assumptions stated above, which can be affected by expectations about future market or economic conditions, demand, and competition.
How We Addressed
the Matter in Our
Audit
  
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Operating Partnership’s impairment evaluation process. This included controls over management’s review of the key assumptions underlying the undiscounted cash flows and the fair value determination. To test the Operating Partnership’s evaluation of impairment of real estate investments, we performed audit procedures that included, among others, testing the key assumptions used by management in its recoverability analysis and in determining the fair value of investments that were impaired. We compared the key assumptions to observable market transaction information published by independent industry research sources to assess whether the assumptions were market supported. We involved a valuation specialist to assist in evaluating the key assumptions listed above. As part of our evaluation, we assessed the historical accuracy of management’s estimates and performed sensitivity analyses of key assumptions to evaluate the changes in the valuation of certain properties that would result from changes in the assumptions or using alternative valuation techniques.
 
In addition, we performed procedures to evaluate the completeness and accuracy of the data utilized in management’s impairment analysis. We also assessed information and events subsequent to the balance sheet date, if any, to corroborate certain of the key assumptions used by management.
 
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Collectability of Lease Payments
 
Description of the Matter
  
The Operating Partnership recorded $479.9 million in rental income for the year ended December 31, 2020. As discussed in Note 2 to the consolidated financial statements, the Operating Partnership evaluates the collectability of lease payments on a regular basis. The Operating Partnership considers certain key factors in assessing collectability, including: tenant’s payment history and financial condition, business conditions in the industry in which the tenant operates, economic conditions of the geographic location in which the tenant operates, as well as other relevant tenant specific circumstances.
 
Auditing management’s evaluation of collectability of lease payments requires judgement as the assessment is based on tenant specific circumstances and expectations of future economic and market conditions. In particular, the longer-term nature of repayments of
COVID-19
induced deferrals, the absence of cash receipts during the deferral period, and the current market environment requires the judgement of management in evaluating the collectability of billed and unbilled tenant receivables. Given the tenant specific nature of this evaluation and the uncertainty associated with future economic and market conditions, the related reserves against revenue are sensitive to the economic and geographic considerations of individual tenants described above and management’s judgment in evaluating the collectability conclusion.
How We Addressed
the Matter in Our
Audit
  
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Operating Partnership’s lease payment collectability process. To test the Operating Partnership’s assessment of collectability, our audit procedures included, among others, evaluating tenant specific financial information, current and historical tenant payment collection, and changes in the collectability conclusions made during the year.
 
In addition, we tested the completeness and accuracy of the data used in management’s collectability analysis. We also assessed information and events subsequent to the balance sheet date, if any, to corroborate certain of the key assumptions used by management.
/s/ Ernst & Young LLP
We have served as the Operating Partnership’s auditor since 2016.
Dallas, Texas
February 19, 2021
 
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SPIRIT REALTY CAPITAL, INC.
Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data)
 
    
December 31,

2020
    
December 31,

2019
 
Assets
                 
Investments:
                 
Real estate investments:
                 
Land and improvements
   $         2,090,592        $         1,910,287    
Buildings and improvements
     4,302,004          3,840,220    
    
 
 
    
 
 
 
Total real estate investments
     6,392,596          5,750,507    
Less: accumulated depreciation
     (850,320)
  
       (717,097)    
    
 
 
    
 
 
 
       5,542,276          5,033,410    
Loans receivable, net
     —          34,465    
Intangible lease assets, net
     367,989          385,079    
Real estate assets under direct financing leases, net
     7,444          14,465    
Real estate assets held for sale, net
     25,821          1,144    
    
 
 
    
 
 
 
Net investments
     5,943,530          5,468,563    
Cash and cash equivalents
     70,303          14,492    
Deferred costs and other assets, net
     157,353          124,006    
Goodwill
     225,600          225,600    
    
 
 
    
 
 
 
Total assets
   $ 6,396,786        $ 5,832,661    
    
 
 
    
 
 
 
     
Liabilities and stockholders’ equity
                 
Liabilities:
                 
Revolving credit facilities
   $ —        $ 116,500    
Term loans, net
     177,309          —    
Senior Unsecured Notes, net
     1,927,348          1,484,066    
Mortgages and notes payable, net
     212,582          216,049    
Convertible Notes, net
     189,102          336,402    
    
 
 
    
 
 
 
Total debt, net
     2,506,341          2,153,017    
Intangible lease liabilities, net
     121,902          127,335    
Accounts payable, accrued expenses and other liabilities
     167,423          139,060    
    
 
 
    
 
 
 
Total liabilities
     2,795,666          2,419,412    
Commitments and contingencies (see Note 6)
             
Stockholders’ equity:
                 
Preferred stock and paid in capital, $0.01 par value, 20,000,000 shares authorized: 6,900,000 shares issued and outstanding at both December 31, 2020 and December 31, 2019, liquidation preference of $25.00 per share
     166,177          166,177    
Common stock, $0.05 par value, 175,000,000 shares authorized: 114,812,615 and 102,476,152 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively
     5,741          5,124    
Capital in excess of common stock par value
     6,126,503          5,686,247    
Accumulated deficit
     (2,688,647)          (2,432,838)    
Accumulated other comprehensive loss
     (8,654)          (11,461)    
    
 
 
    
 
 
 
Total stockholders’ equity
     3,601,120          3,413,249    
    
 
 
    
 
 
 
Total liabilities and stockholders’ equity
   $ 6,396,786         $ 5,832,661    
    
 
 
    
 
 
 
See accompanying notes.
 
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SPIRIT REALTY CAPITAL, INC.
Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
 
    
For the Year Ended December 31,
 
    
2020
    
2019
    
2018
 
Revenues:
                          
Rental income
   $ 479,901        $ 438,691        $ 402,321    
Interest income on loans receivable
     998          3,240          3,447    
Earned income from direct financing leases
     571          1,239          1,814    
Related party fee income
     678          69,218          15,838    
Other income
     1,469          4,039          21,705    
    
 
 
    
 
 
    
 
 
 
Total revenues
     483,617          516,427          445,125    
Expenses:
                          
General and administrative
     48,380           52,424          52,993    
Termination of interest rate swaps
     —          12,461          —    
Property costs (including reimbursable)
     24,492          18,637          21,066    
Deal pursuit costs
     2,432          844
 
 
 
       210    
Interest
     104,165          101,060          97,548    
Depreciation and amortization
     212,620          175,465          162,452    
Impairments
     81,476          24,091          6,725    
    
 
 
    
 
 
    
 
 
 
Total expenses
     473,565           384,982          340,994    
    
 
 
    
 
 
    
 
 
 
Other income:
                          
(Loss) gain on debt extinguishment
     (7,227)         (14,330)         27,092    
Gain on disposition of assets
     24,156          58,850          14,629    
Preferred dividend income from SMTA
     —          10,802          8,750    
Other expense
     —          —          (5,319)   
    
 
 
    
 
 
    
 
 
 
Total other income
     16,929          55,322          45,152    
    
 
 
    
 
 
    
 
 
 
Income from continuing operations before income tax expense
     26,981          186,767          149,283    
Income tax expense
     (273)         (11,501)         (792)   
    
 
 
    
 
 
    
 
 
 
Income from continuing operations
     26,708          175,266          148,491    
Loss from discontinued operations
     —         
 
 
       (16,439)   
    
 
 
    
 
 
    
 
 
 
Net Income
     26,708          175,266          132,052    
Dividends paid to preferred stockholders
     (10,350)         (10,350)         (10,352)   
    
 
 
    
 
 
    
 
 
 
Net income attributable to common stockholders
   $ 16,358        $ 164,916        $ 121,700    
    
 
 
    
 
 
    
 
 
 
                            
Net income per share attributable to common stockholders - basic:
                          
Continuing operations
   $ 0.15        $ 1.81        $ 1.59    
Discontinued operations
     —          —          (0.19)   
    
 
 
    
 
 
    
 
 
 
Net income per share attributable to common stockholders - basic
   $ 0.15        $ 1.81        $ 1.40    
                            
Net income per share attributable to common stockholders - diluted:
                          
Continuing operations
   $ 0.15        $ 1.81        $ 1.58    
Discontinued operations
     —          —          (0.19)   
    
 
 
    
 
 
    
 
 
 
Net income per share attributable to common stockholders - diluted
   $ 0.15        $ 1.81        $ 1.39    
                            
Weighted average shares of common stock outstanding:
                          
Basic
     104,357,660          90,621,808          86,321,268    
Diluted
     104,535,384          90,869,312          86,476,449    
See accompanying notes.
 
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SPIRIT REALTY CAPITAL, INC.
Consolidated Statements of Comprehensive Income
(In Thousands)
 
    
For the Year Ended December 31,
 
    
2020
    
2019
   
2018
Net income attributable to common stockholders
   $ 16,358      $ 164,916     $ 121,700  
Other comprehensive income (loss):
                         
 Net reclassification of amounts from (to) AOCL
     2,807        (4,302     (7,159
    
 
 
    
 
 
   
 
 
 
Total comprehensive income
   $           19,165      $         160,614     $         114,541    
    
 
 
    
 
 
   
 
 
 
See accompanying notes.
 
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SPIRIT REALTY CAPITAL, INC.
Consolidated Statements of Stockholders’ Equity
(In Thousands, Except Share Data)
 
 
 
Preferred Stock
 
Common Stock
 
 
 
 
 
 
 
 
Shares
 
Par

Value and
Capital in
Excess of

Par Value
 
Shares
 
Par
Value
 
Capital in

Excess of

Par Value
 
Accumulated

Deficit
 
AOCL
 
Total

Stockholders’

Equity
Balances, December 31, 2017
 
 
6,900,000
 
 
$
166,193
 
 
 
89,774,135
 
 
$
4,489
 
 
$
5,193,631
 
 
$
(2,044,704
 
$
 
 
$
3,319,609
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
132,052
 
 
 
 
 
 
132,052
 
Dividends declared on preferred stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,352
 
 
 
 
 
(10,352
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common stockholders
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
121,700
 
 
 
 
 
 
121,700
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(7,159
 
 
(7,159
Cost associated with preferred stock
 
 
 
 
 
(16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(16
Dividends declared on common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(262,887
 
 
 
 
 
(262,887
Tax withholdings related to net stock settlements
 
 
 
 
 
 
 
 
(57,679
 
 
(3
 
 
 
 
 
(2,400
 
 
 
 
 
(2,403
Issuance of shares of common stock, net
 
 
 
 
 
 
 
 
92,458
 
 
 
5
 
 
 
2,967
 
 
 
 
 
 
 
 
 
2,972
 
Repurchase of common shares
 
 
 
 
 
 
 
 
(4,244,446
 
 
(212
 
 
 
 
 
(167,953
 
 
 
 
 
(168,165
SMTA dividend distribution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(216,005
 
 
 
 
 
 
 
 
(216,005
Stock-based compensation, net
 
 
 
 
 
 
 
 
222,887
 
 
 
10
 
 
 
15,104
 
 
 
(1,011
 
 
 
 
 
14,103
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, December 31, 2018
 
 
6,900,000
 
 
$
166,177
 
 
 
85,787,355
 
 
$
4,289
 
 
$
4,995,697
 
 
$
(2,357,255
 
$
(7,159
 
$
2,801,749
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175,266
 
 
 
 
 
 
175,266
 
Dividends declared on preferred
stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,350
 
 
 
 
 
(10,350
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common
stockholders
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
164,916
 
 
 
 
 
 
164,916
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4,302
 
 
(4,302
Dividends declared on common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(236,943
 
 
 
 
 
(236,943
Tax withholdings related to net stock settlements
 
 
 
 
 
 
 
 
(58,445
 
 
(3
 
 
 
 
 
(2,539
 
 
 
 
 
(2,542
Issuance of shares of common stock, net
 
 
 
 
 
 
 
 
16,578,423
 
 
 
829
 
 
 
676,361
 
 
 
 
 
 
 
 
 
677,190
 
Stock-based compensation, net
 
 
 
 
 
 
 
 
168,819
 
 
 
9
 
 
 
14,268
 
 
 
(1,017
 
 
 
 
 
13,260
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(79
 
 
 
 
 
 
 
 
(79
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, December 31, 2019
 
 
6,900,000
 
 
$
166,177
 
 
 
102,476,152
 
 
$
5,124
 
 
$
5,686,247
 
 
$
(2,432,838
 
$
(11,461
 
$
3,413,249
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,708
 
 
 
 
 
 
26,708
 
Dividends declared on preferred stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,350
 
 
 
 
 
(10,350
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common stockholders
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,358
 
 
 
 
 
 
16,358
 
Other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,807
 
 
 
2,807
 
Dividends declared on common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(266,659
 
 
 
 
 
(266,659
Tax withholdings related to net stock settlements
 
 
 
 
 
 
 
 
(117,543
 
 
(6
 
 
 
 
 
(4,375
 
 
 
 
 
(4,381
Issuance of shares of common stock, net
 
 
 
 
 
 
 
 
12,137,210
 
 
 
607
 
 
 
427,632
 
 
 
 
 
 
 
 
 
428,239
 
Stock-based compensation, net
 
 
 
 
 
 
 
 
316,796
 
 
 
16
 
 
 
12,624
 
 
 
(1,133
 
 
 
 
 
11,507
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, December 31, 2020
 
 
6,900,000
 
 
$
166,177
 
 
 
114,812,615
 
 
$
5,741
 
 
$
6,126,503
 
 
$
(2,688,647
 
$
(8,654
 
$
3,601,120
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes.
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Consolidated Statements of Cash Flows
(In Thousands)
 
    
For the Year Ended December 31,
    
2020
 
2019
 
2018
Operating activities
  
 
 
 
 
 
 
 
 
 
 
 
Net income
  
$
26,708
 
 
$
175,266
 
 
$
132,052
 
Adjustments to reconcile net income to net cash provided by operating activities:
  
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
  
 
212,620
 
 
 
175,465
 
 
 
197,913
 
Impairments
  
 
81,476
 
 
 
24,091
 
 
 
17,668
 
Amortization of deferred financing costs
  
 
5,278
 
 
 
6,289
 
 
 
9,306
 
Amortization of debt discounts
  
 
4,343
 
 
 
7,028
 
 
 
13,560
 
Amortization of deferred losses on interest rate swaps
  
 
2,807
 
 
 
858
 
 
 
 
Loss on termination of interest rate swaps
  
 
 
 
 
12,461
 
 
 
 
Payment for termination of interest rate swaps
  
 
 
 
 
(24,843
 
 
 
Stock-based compensation expense
  
 
12,640
 
 
 
14,277
 
 
 
15,114
 
Loss (gain) on debt extinguishment
  
 
7,227
 
 
 
14,330
 
 
 
(26,729
Gain on dispositions of real estate and other assets
  
 
(24,156
 
 
(58,850
 
 
(14,355
Non-cash
revenue
  
 
(12,996
 
 
(19,943
 
 
(18,878
Bad debt expense and other
  
 
221
 
 
 
189
 
 
 
2,313
 
Changes in operating assets and liabilities:
  
 
 
 
 
 
 
 
 
 
 
 
Deferred costs and other assets, net
  
 
(21,296
 
 
2,953
 
 
 
(1,396
Accounts payable, accrued expenses and other liabilities
  
 
19,440
 
 
 
9,482
 
 
 
9,797
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
  
 
314,312
 
 
 
339,053
 
 
 
336,365
 
Investing activities
  
 
 
 
 
 
 
 
 
 
 
 
Acquisitions of real estate
  
 
(867,456
 
 
(1,295,545
 
 
(257,712
Capitalized real estate expenditures
  
 
(12,659
 
 
(47,652
 
 
(52,390
Investments in loans receivable
  
 
 
 
 
 
 
 
(35,450
Proceeds from redemption of preferred equity investment
  
 
 
 
 
150,000
 
 
 
 
Collections from investment in Master Trust 2014
  
 
 
 
 
33,535
 
 
 
 
Collections of principal on loans receivable
  
 
31,771
 
 
 
11,037
 
 
 
30,427
 
Proceeds from dispositions of real estate and other assets, net
  
 
100,594
 
 
 
253,626
 
 
 
94,663
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash used in investing activities
  
 
(747,750
 
 
(894,999
 
 
(220,462
Financing activities
  
 
 
 
 
 
 
 
 
 
 
 
Borrowings under revolving credit facilities
  
 
1,155,000
 
 
 
1,047,200
 
 
 
826,000
 
Repayments under revolving credit facilities
  
 
(1,271,500
 
 
(1,077,000
 
 
(791,700
Borrowings under mortgages and notes payable
  
 
 
 
 
 
 
 
104,247
 
Repayments under mortgages and notes
payable
  
 
(4,101
 
 
(242,049
 
 
(170,519
Borrowings under term loans
  
 
400,000
 
 
 
820,000
 
 
 
420,000
 
Repayments under term loans
  
 
(222,000
 
 
(1,240,000
 
 
 
Repayments under Convertible Notes
  
 
(154,574
 
 
(402,500
 
 
 
Borrowings under Senior Unsecured
Notes
  
 
445,509
 
 
 
1,198,264
 
 
 
 
Debt extinguishment costs
  
 
(4,032
 
 
(15,277
 
 
(2,968
Deferred financing costs
  
 
(6,642
 
 
(22,105
 
 
(1,981
Cash, cash equivalents and restricted cash held by SMTA at
Spin-Off
  
 
 
 
 
 
 
 
(73,081
Sale of SubREIT preferred shares
  
 
 
 
 
 
 
 
5,000
 
Proceeds from issuance of common stock, net of offering costs
  
 
428,272
 
 
 
677,428
 
 
 
2,972
 
Proceeds from issuance of preferred stock, net of offering costs
  
 
 
 
 
 
 
 
(16
 
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SPIRIT REALTY CAPITAL, INC.
Consolidated Statements of Cash Flows - (continued)
(In Thousands)
 
 
  
For the Year Ended December 31,
 
  
2020
 
2019
 
2018
Repurchase of shares of common stock, including tax withholdings related to net stock settlements
  
 
(4,381
 
 
(2,541
 
 
(170,568
Common stock dividends paid
  
 
(260,488
 
 
(226,522
 
 
(290,223
Preferred stock dividends paid
  
 
(10,350
 
 
(10,350
 
 
(10,352
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) financing activities
  
 
490,713
 
 
 
504,548
 
 
 
(153,189
 
  
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
  
 
57,275
 
 
 
(51,398
 
 
(37,286
Cash, cash equivalents and restricted cash, beginning of period
  
 
26,023
 
 
 
77,421
 
 
 
114,707
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash, end of period
  
$
83,298
 
 
$
26,023
 
 
$
77,421
 
 
  
 
 
 
 
 
 
 
 
 
 
 
The following table presents the supplemental cash flow disclosures (in thousands):
 
Supplemental Disclosures of
Non-Cash
Activities:
  
For the Year Ended December 31,
 
  
      2020      
  
      2019      
  
      2018      
Distributions declared and unpaid
  
$
       71,758
 
  
$
64,049
 
  
$
53,617
 
Relief of debt through sale or foreclosure of real estate properties
  
 
 
  
 
10,368
 
  
 
56,119
 
Net real estate and other collateral assets sold or surrendered to lender
  
 
 
  
 
654
 
  
 
28,271
 
Accrued interest capitalized to principal 
(1)
  
 
 
  
 
251
 
  
 
1,967
 
Accrued market-based award dividend rights
  
 
1,133
 
  
 
1,017
 
  
 
1,011
 
Accrued capitalized costs
  
 
2,174
 
  
 
2,230
 
  
 
695
 
Financing provided in connection with disposition of assets
  
 
 
  
 
 
  
 
2,888
 
Right-of-use
lease assets
  
 
 
  
 
6,143
 
  
 
 
Lease liabilities
  
 
 
  
 
6,143
 
  
 
 
Reclass of residual value from direct financing lease to operating lease
  
 
6,831
 
  
 
5,841
 
  
 
4,455
 
Investment in preferred shares
  
 
 
  
 
 
  
 
150,000
 
Non-cash
distribution to SMTA, net
  
 
 
  
 
 
  
 
142,924
 
Cash flow hedge changes in fair value
  
 
 
  
 
18,593
 
  
 
7,159
 
Receivable for disposal of real estate property
  
 
2,000
 
  
 
 
  
 
 
Supplemental Cash Flow Disclosures:
  
     
  
     
  
     
Cash paid for interest
  
$
82,916
 
  
$
         73,530
 
  
$
         118,329
 
Cash paid for taxes
  
 
801
 
  
 
11,826
 
  
 
1,099
 
 
 
(1)
 
    Accrued and overdue interest on certain CMBS notes that have been intentionally placed in default.
See accompanying notes.
 
66

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SPIRIT REALTY, L.P.
Consolidated Balance Sheets
(In Thousands, Except Unit and Per Unit Data)
 
    
    December 31,    

2020
   
    December 31,    

2019
 
Assets
                
Investments:
                
Real estate investments:
                
Land and improvements
   $ 2,090,592     $ 1,910,287    
Buildings and improvements
     4,302,004       3,840,220    
    
 
 
   
 
 
 
Total real estate investments
     6,392,596       5,750,507    
Less: accumulated depreciation
     (850,320     (717,097)   
    
 
 
   
 
 
 
       5,542,276       5,033,410    
Loans receivable, net
           34,465    
Intangible lease assets, net
     367,989       385,079    
Real estate assets under direct financing leases, net
     7,444       14,465    
Real estate assets held for sale, net
     25,821       1,144    
    
 
 
   
 
 
 
Net investments
     5,943,530       5,468,563    
Cash and cash equivalents
     70,303       14,492    
Deferred costs and other assets, net
     157,353       124,006    
Goodwill
     225,600       225,600    
    
 
 
   
 
 
 
Total assets
   $ 6,396,786     $ 5,832,661    
    
 
 
   
 
 
 
     
Liabilities and partners’ capital
                
Liabilities:
                
Revolving credit facilities
   $     $ 116,500    
Term loans, net
     177,309       —    
Senior Unsecured Notes, net
     1,927,348       1,484,066    
Mortgages and notes payable, net
     212,582       216,049    
Notes Payable to Spirit Realty Capital, Inc., net
     189,102       336,402    
    
 
 
   
 
 
 
Total debt, net
     2,506,341       2,153,017    
Intangible lease liabilities, net
     121,902       127,335    
Accounts payable, accrued expenses and other liabilities
     167,423       139,060    
    
 
 
   
 
 
 
Total liabilities
     2,795,666       2,419,412    
Commitments and contingencies (see Note 6)
                
Partners’ Capital
                
General partner’s common capital, 797,644 units issued and outstanding as of both December 31, 2020 and December 31, 2019
     20,505       22,389    
Limited partners’ preferred capital: 6,900,000 units issued and outstanding as of December 31, 2020 and December 31, 2019, respectively
     166,177       166,177    
Limited partners’ common capital: 114,014,971 and 101,678,508 units issued and outstanding as of December 31, 2020 and December 31, 2019, respectively
     3,414,438       3,224,683    
    
 
 
   
 
 
 
Total partners’ capital
     3,601,120       3,413,249    
    
 
 
   
 
 
 
Total liabilities and partners’ capital
   $ 6,396,786     $ 5,832,661    
    
 
 
   
 
 
 
See accompanying notes.
 
67

Table of Contents
SPIRIT REALTY, L.P.
Consolidated Statements of Operations
(In Thousands, Except Unit and Per Unit Data)
 
 
  
Year Ended December 31,
 
 
  
2020
 
 
2019
 
 
2018
 
Revenues:
  
 
 
 
 
 
 
 
 
 
 
 
Rental income
  
$
      479,901
 
 
$
      438,691
 
 
$
      402,321
 
Interest income on loans receivable
  
 
998
 
 
 
3,240
 
 
 
3,447
 
Earned income from direct financing leases
  
 
571
 
 
 
1,239
 
 
 
1,814
 
Related party fee income
  
 
678
 
 
 
69,218
 
 
 
15,838
 
Other income
  
 
1,469
 
 
 
4,039
 
 
 
21,705
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Total revenues
  
 
483,617
 
 
 
516,427
 
 
 
445,125
 
Expenses:
  
 
 
 
 
 
 
 
 
 
 
 
General and administrative
  
 
48,380
 
 
 
52,424
 
 
 
52,993
 
Termination of interest rate swaps
  
 
 
 
 
12,461
 
 
 
 
Property costs (including reimbursable)
  
 
24,492
 
 
 
18,637
 
 
 
21,066
 
Deal pursuit costs
  
 
2,432
 
 
 
844
 
 
 
210
 
Interest
  
 
104,165
 
 
 
101,060
 
 
 
97,548
 
Depreciation and amortization
  
 
212,620
 
 
 
175,465
 
 
 
162,452
 
Impairments
  
 
81,476
 
 
 
24,091
 
 
 
6,725
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Total expenses
  
 
473,565
 
 
 
384,982
 
 
 
340,994
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Other income:
  
 
 
 
 
 
 
 
 
 
 
 
(Loss) gain on debt extinguishment
  
 
(7,227)
 
 
 
(14,330)
 
 
 
27,092
 
Gain on disposition of assets
  
 
24,156
 
 
 
58,850
 
 
 
14,629
 
Preferred dividend income from SMTA
  
 
 
 
 
10,802
 
 
 
8,750
 
Other expense
  
 
 
 
 
 
 
 
(5,319)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Total other income
  
 
16,929
 
 
 
55,322
 
 
 
45,152
 
Income from continuing operations before income tax expense
  
 
26,981
 
 
 
186,767
 
 
 
149,283
 
Income tax expense
  
 
(273)
 
 
 
(11,501)
 
 
 
(792)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
  
 
26,708
 
 
 
175,266
 
 
 
148,491
 
Loss from discontinued operations
  
 
 
 
 
 
 
 
(16,439)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net income
  
 
26,708
 
 
 
175,266
 
 
 
132,052
 
Preferred distributions
  
 
(10,350)
 
 
 
(10,350)
 
 
 
(10,352)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net income after preferred distributions
  
$
16,358
 
 
$
164,916
 
 
$
121,700
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to the general partner:
  
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
  
$
125
 
 
$
1,450
 
 
$
1,270
 
Discontinued operations
  
 
 
 
 
 
 
 
(151)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to the general partner
  
$
125
 
 
$
1,450
 
 
$
1,119
 
 
 
 
 
Net income attributable to the limited partners:
  
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
  
$
26,583
 
 
$
173,816
 
 
$
147,221
 
Discontinued operations
  
 
 
 
 
 
 
 
(16,288)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to the limited partners
  
$
26,583
 
 
$
173,816
 
 
$
130,933
 
See accompanying notes.
 
68

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SPIRIT REALTY, L.P.
Consolidated Statements of Operations
(In Thousands, Except Unit and Per Unit Data)
 
 
  
Year Ended December 31,
 
 
  
2020
 
  
2019
 
  
2018
 
Net income per partnership unit - basic:
  
 
 
 
  
 
 
 
  
 
 
 
Continuing operations
  
$
0.15
 
  
$
1.81
 
  
$
1.59
 
Discontinued operations
  
 
 
  
 
 
  
 
(0.19
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income per partnership unit - basic
  
$
0.15
 
  
$
1.81
 
  
$
1.40
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income per partnership unit - diluted:
  
 
 
 
  
 
 
 
  
 
 
 
Continuing operations
  
$
0.15
 
  
$
1.81
 
  
$
1.58
 
Discontinued operations
  
 
 
  
 
 
  
 
(0.19
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income per partnership unit - diluted
  
$
0.15
 
  
$
1.81
 
  
$
1.39
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Weighted average partnership units outstanding:
  
 
 
 
  
 
 
 
  
 
 
 
Basic
  
 
104,357,660
 
  
 
90,621,808
 
  
 
86,321,268
 
Diluted
  
 
104,535,384
 
  
 
90,869,312
 
  
 
86,476,449
 
 
69

Table of Contents
SPIRIT REALTY, L.P.
Consolidated Statements of Comprehensive Income
(In Thousands)
 
    
For the Year Ended December 31,
 
    
      2020      
    
      2019      
   
      2018      
 
Net income after preferred distributions
  
$
16,358
 
 
$
164,916
 
 
$
121,700
 
Other comprehensive income (loss):
  
 
 
 
 
 
 
 
 
 
 
 
Net reclassification of amounts from (to) AOCL
  
 
2,807
 
 
 
(4,302
 
 
(7,159 )  
  
 
 
    
 
 
   
 
 
 
Total comprehensive income
  
$
      19,165
 
 
$
      160,614
 
 
$
      114,541
  
  
 
 
    
 
 
   
 
 
 
See accompanying notes.
 
70

Table of Contents
SPIRIT REALTY, L.P.
Consolidated Statements of Partners’ Capital
(In Thousands, Except Unit Data)
 
   
Preferred Units
 
Common Units
 
Total
   
Limited Partners’ Capital
 (2)
 
General Partner’s Capital
 (1)
 
Limited Partners’ Capital
 (2)
 
Partnership
   
    Units    
 
  Amount  
   
    Units    
 
    Amount    
   
    Units    
 
    Amount    
 
Capital
Balances, December 31, 2017
     6,900,000     $ 166,193       797,644      $ 24,426       88,976,491     $ 3,128,990     $ 3,319,609  
Net income
                       1,119             130,933       132,052  
Partnership distributions declared on preferred units
                                   (10,352     (10,352
            
 
 
 
         
 
 
 
         
 
 
 
 
 
 
 
Net income after preferred distributions
                           1,119               120,581       121,700  
Other comprehensive loss
                       (66           (7,093     (7,159
Partnership distributions declared on common units
                       (2,418           (260,469     (262,887
Tax withholdings related to net settlement of common units
                             (57,679     (2,403     (2,403
Issuance of common units, net
           (16                 92,458       2,972       2,956  
Repurchase of common units
                             (4,244,446     (168,165     (168,165
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SMTA dividend distribution
                                   (216,005     (216,005
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation, net
                             222,887       14,103       14,103  
Balances, December 31, 2018
     6,900,000     $ 166,177       797,644      $ 23,061       84,989,711     $ 2,612,511     $ 2,801,749  
            
 
 
 
         
 
 
 
         
 
 
 
 
 
 
 
Net income
                       1,450             173,816       175,266  
Partnership distributions declared on preferred units
                                   (10,350     (10,350
           
 
 
           
 
 
           
 
 
 
 
 
 
 
Net income after preferred distributions
                           1,450               163,466       164,916  
Other comprehensive loss
                       (38           (4,264     (4,302
Partnership distributions declared on common units
                       (2,083           (234,860     (236,943
Tax withholdings related to net settlement of common units
                             (58,445     (2,542     (2,542
Issuance of common units, net
                             16,578,423       677,190       677,190  
Stock-based compensation, net
                             168,819       13,260       13,260  
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
                       (1           (78     (79
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, December 31, 2019
     6,900,000     $ 166,177       797,644      $ 22,389       101,678,508     $ 3,224,683     $ 3,413,249  
Net income
                       125             26,583       26,708  
            
 
 
 
         
 
 
 
         
 
 
 
 
 
 
 
Partnership distributions declared on preferred units
                                   (10,350     (10,350
Net income after preferred distributions
                           125               16,233       16,358  
Other comprehensive income
                       21             2,786       2,807  
Partnership distributions declared on common units
                       (2,030           (264,629     (266,659
Tax withholdings related to net settlement of common units
                             (117,543     (4,381     (4,381
Issuance of common units, net
                             12,137,210       428,239       428,239  
Stock-based compensation, net
                             316,796       11,507       11,507  
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, December 31, 2020
     6,900,000      $ 166,177        797,644       $ 20,505        114,014,971      $ 3,414,438      $ 3,601,120   
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
Consists of general partnership interests held by Spirit General OP Holdings, LLC.
 
(2)
 
Consists of limited partnership interests held by Spirit Realty Capital, Inc. and Spirit Notes Partner, LLC.
See accompanying notes.
 
71

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SPIRIT REALTY, L.P.
Consolidated Statements of Cash Flows
(In Thousands)
 
 
  
For the Year Ended December 31,
 
  
2020
 
2019
 
2018
Operating activities
  
     
 
     
 
     
Net income
  
$
26,708
 
 
$
175,266
 
 
$
132,052
 
Adjustments to reconcile net income to net cash provided by operating activities:
  
     
 
     
 
     
Depreciation and amortization
  
 
212,620
 
 
 
    175,465
 
 
 
    197,913
 
Impairments
  
 
81,476
 
 
 
24,091
 
 
 
17,668
 
Amortization of deferred financing costs
  
 
5,278
 
 
 
6,289
 
 
 
9,306
 
Amortization of debt discounts
  
 
4,343
 
 
 
7,028
 
 
 
13,560
 
Amortization of deferred losses on interest rate swaps
  
 
2,807
 
 
 
858
 
 
 
 
Loss on termination of interest rate swaps
  
 
 
 
 
12,461
 
 
 
 
Payment for termination of interest rate swaps
  
 
 
 
 
(24,843
 
 
 
Stock-based compensation expense
  
 
12,640
 
 
 
14,277
 
 
 
15,114
 
Loss (gain) on debt extinguishment
  
 
7,227
 
 
 
14,330
 
 
 
(26,729
Gain on dispositions of real estate and other assets
  
 
(24,156
 
 
(58,850
 
 
(14,355
Non-cash
revenue
  
 
(12,996
 
 
(19,943
 
 
(18,878
Bad debt expense and other
  
 
221
 
 
 
189
 
 
 
2,313
 
Changes in operating assets and liabilities:
  
     
 
     
 
     
Deferred costs and other assets, net
  
 
(21,296
 
 
2,953
 
 
 
(1,396
Accounts payable, accrued expenses and other liabilities
  
 
19,440
 
 
 
9,482
 
 
 
9,797
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
  
 
314,312
 
 
 
339,053
 
 
 
336,365
 
Investing activities
  
     
 
     
 
     
Acquisitions of real estate
  
 
(867,456
 
 
(1,295,545
 
 
(257,712
Capitalized real estate expenditures
  
 
(12,659
 
 
(47,652
 
 
(52,390
Investments in loans receivable
  
 
 
 
 
 
 
 
(35,450
Proceeds from redemption of preferred equity investment
  
 
 
 
 
150,000
 
 
 
 
Collections from investment in Master Trust 2014
  
 
 
 
 
33,535
 
 
 
 
Collections of principal on loans receivable
  
 
31,771
 
 
 
11,037
 
 
 
30,427
 
Proceeds from dispositions of real estate and other assets, net
  
 
100,594
 
 
 
253,626
 
 
 
94,663
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash used in investing activities
  
 
(747,750
 
 
(894,999
 
 
(220,462
Financing activities
  
     
 
     
 
     
Borrowings under revolving credit facilities
  
 
1,155,000
 
 
 
1,047,200
 
 
 
826,000
 
Repayments under revolving credit facilities
  
 
(1,271,500
 
 
(1,077,000
 
 
(791,700
Borrowings under mortgages and notes payable
  
 
 
 
 
 
 
 
104,247
 
Repayments under mortgages and notes payable
  
 
(4,101
 
 
(242,049
 
 
(170,519
Borrowings under term loans
  
 
400,000
 
 
 
820,000
 
 
 
420,000
 
Repayments under term loans
  
 
(222,000
 
 
(1,240,000
 
 
 
Repayments under Convertible Notes
  
 
(154,574
 
 
(402,500
 
 
 
Borrowings under Senior Unsecured Notes
  
 
445,509
 
 
 
1,198,264
 
 
 
 
Debt extinguishment costs
  
 
(4,032
 
 
(15,277
 
 
(2,968
Deferred financing costs
  
 
(6,642
 
 
(22,105
 
 
(1,981
Cash, cash equivalents and restricted cash held by SMTA at
Spin-Off
  
 
 
 
 
 
 
 
(73,081
Sale of SubREIT preferred shares
  
 
 
 
 
 
 
 
5,000
 
Proceeds from issuance of common stock, net of offering costs
  
 
428,272
 
 
 
677,428
 
 
 
2,972
 
 
72

Table of Contents
SPIRIT REALTY, L.P.
Consolidated Statements of Cash Flows - (continued)
(In Thousands)
 
 
  
For the Year Ended December 31,
 
  
2020
 
2019
 
2018
Proceeds from issuance of preferred stock, net of offering costs
  
 
 
 
 
 
 
 
(16
Repurchase of shares of common stock, including tax withholdings related to net stock settlements
  
 
(4,381
 
 
(2,541
 
 
(170,568
Common distributions paid
  
 
(260,488
 
 
(226,522
 
 
(290,223
Preferred distributions paid
  
 
(10,350
 
 
(10,350
 
 
(10,352
 
  
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) financing activities
  
 
490,713
 
 
 
504,548
 
 
 
(153,189
 
  
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
  
 
57,275
 
 
 
(51,398
 
 
(37,286
Cash, cash equivalents and restricted cash, beginning of period
  
 
26,023
 
 
 
77,421
 
 
 
114,707
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash, end of period
  
$
83,298
 
 
$
26,023
 
 
$
77,421
 
 
  
 
 
 
 
 
 
 
 
 
 
 
The following table presents the supplemental cash flow disclosures (in thousands):
 
Supplemental Disclosures of
Non-Cash
Activities:
  
For the Year Ended December 31,
 
  
      2020      
  
      2019      
  
      2018      
Distributions declared and unpaid
  
$
       71,758      
 
  
$
       64,049      
 
  
$
       53,617 
 
Relief of debt through sale or foreclosure of real estate properties
  
 
—      
 
  
 
10,368      
 
  
 
56,119 
 
Net real estate and other collateral assets sold or surrendered to lender
  
 
—      
 
  
 
654      
 
  
 
28,271 
 
Accrued interest capitalized to principal 
(1)
  
 
—      
 
  
 
251      
 
  
 
1,967 
 
Accrued market-based award dividend rights
  
 
1,133      
 
  
 
1,017      
 
  
 
1,011 
 
Accrued capitalized costs
  
 
2,174      
 
  
 
2,230      
 
  
 
695 
 
Financing provided in connection with disposition of assets
  
 
—      
 
  
 
—      
 
  
 
2,888 
 
Right-of-use
lease assets
  
 
—      
 
  
 
6,143      
 
  
 
— 
 
Lease liabilities
  
 
—      
 
  
 
6,143      
 
  
 
— 
 
Reclass of residual value from direct financing lease to operating lease
  
 
6,831      
 
  
 
5,841      
 
  
 
4,455 
 
Investment in preferred shares
  
 
—      
 
  
 
—      
 
  
 
150,000 
 
Non-cash
distribution to SMTA, net
  
 
—      
 
  
 
—      
 
  
 
142,924 
 
Cash flow hedge changes in fair value
  
 
—      
 
  
 
18,593      
 
  
 
7,159 
 
Receivable for disposal of real estate property
  
 
2,000      
 
  
 
—      
 
  
 
— 
 
Supplemental Cash Flow Disclosures:
  
     
  
     
  
     
Cash paid for interest
  
$
82,916      
 
  
$
73,530      
 
  
$
118,329 
 
Cash paid for taxes
  
 
801      
 
  
 
11,826      
 
  
 
1,099 
 
 
 
(1)
 
    Accrued and overdue interest on certain CMBS notes that have been intentionally placed in default.
See accompanying notes.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements
December 31, 2020
NOTE 1. ORGANIZATION
Organization and Operations
Spirit Realty Capital, Inc. (the “Corporation” or “Spirit” or, with its consolidated subsidiaries, the “Company”) operates as a self-administered and self-managed REIT that seeks to generate and deliver sustainable and attractive returns for stockholders by primarily investing in and managing a portfolio of single-tenant, operationally essential real estate throughout the
 
United States
that is generally leased on a long-term,
triple-net
basis to tenants operating within retail, industrial, office and other property types. Single tenant, operationally essential real estate generally refers to free-standing, commercial real estate facilities where tenants conduct activities that are essential to the generation of their sales and profits.
The Company’s operations are generally carried out through Spirit Realty, L.P. (the “Operating Partnership”) and its subsidiaries. Spirit General OP Holdings, LLC, one of the Corporation’s wholly-owned subsidiaries, is the sole general partner and owns approximately 1% of the Operating Partnership. The Corporation and a wholly-owned subsidiary (Spirit Notes Partner, LLC) are the only limited partners and together own the remaining 99% of the Operating Partnership.
On May 31, 2018, the Company completed the
spin-off
(the
“Spin-Off”)
of the assets that collateralized Master Trust 2014, properties leased to Shopko, and certain other assets into an independent, publicly traded REIT, Spirit MTA REIT (“SMTA”). For periods prior to the
Spin-Off,
the historical financial results of SMTA are reflected in our consolidated financial statements as discontinued operations. The Company formed Spirit Realty AM Corporation (“SRAM”), a wholly-owned taxable REIT subsidiary. The rights and obligations of the Asset Management Agreement were transferred to SRAM on April 1, 2019, which was subsequently terminated and simultaneously replaced by the Interim Management Agreement between SRAM and SMTA, which was effective from September 20, 2019 through September 4, 2020. The Company allocated personnel and other general and administrative costs to SRAM for management services provided to SMTA.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting and Principles of Consolidation
The accompanying consolidated financial statements of the Company and the Operating Partnership have been prepared on the accrual basis of accounting, in accordance with GAAP. The consolidated financial statements of the Company include the accounts of the Corporation and its wholly-owned subsidiaries. In the opinion of management, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of the information required to be set forth therein. The consolidated financial statements of the Operating Partnership include the accounts of the Operating Partnership and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
A variable interest entity (“VIE”) would be consolidated by the Company when the Company is the primary beneficiary, which is based on whether the Company has
 
(i)
 the power to direct activities that most significantly impact the economic performance of the VIE and
(ii)
 the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Determination of the primary beneficiary of a VIE considers all relationships between the Company and the VIE, including management agreements and other contractual arrangements. The Company evaluated SMTA as a VIE at the time of
Spin-Off
and quarterly thereafter until the third quarter of 2019 and concluded the Company was not the primary beneficiary. In the third quarter of 2019, the Company no longer had variable interests in SMTA and control was evaluated under the voting interest model. The Company concluded SMTA
did
not require consolidation by the Company for any period presented.
All expenses incurred by the Company have been allocated to the Operating Partnership in accordance with the Operating Partnership’s first amended and restated agreement of limited partnership, which management determined to be a reasonable method of allocation. Therefore, expenses incurred would not be materially different if the Operating Partnership had operated as an unaffiliated entity.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
These consolidated financial statements include certain special purpose entities that were formed to acquire and hold real estate encumbered by indebtedness (see Note 4). Each special purpose entity is a separate legal entity and is the sole owner of its assets and responsible for its liabilities. The assets of these special purpose entities are not available to pay, or otherwise satisfy obligations to, the creditors of any affiliate or owner of another entity unless the special purpose entities have expressly agreed and are permitted under their governing documents. As of December 31, 2020 and 2019, net assets totaling $343.4 million and $375.5 million, respectively, were held, and net liabilities totaling $215.9 million and $231.7 million, respectively, were owed by these encumbered special purpose entities and are included in the accompanying consolidated balance sheets.
Discontinued Operations
A discontinued operation represents: (i) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on the Company’s operations and financial results or (ii) an acquired business that is classified as held for sale on the date of acquisition. Examples of a strategic shift include disposing of: (i) a separate major line of business, (ii) a separate major geographic area of operations, or (iii) other major parts of the Company. The Company determined that the
Spin-Off
represented a strategic shift that had a major effect on the Company’s results and, therefore, SMTA’s operations
qualified
as discontinued operations. See Note 12 for further discussion of discontinued operations.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates.
Segment Reporting
The Company views its operations as one segment, which consists of net leasing operations. The Company has no other reportable segments.
Real Estate Investments
Purchase Accounting and Acquisition of Real Estate
When acquiring a property, the purchase price (including acquisition and closing costs) is allocated to land, building, improvements and equipment based on their relative fair values. The Company considers several assumptions to estimate the fair value of the components of the tangible property acquired including market assumptions for land, building and improvements. The determination of the intangible assets and liabilities primarily relate to the contractual lease terms, estimates of the fair market rental rates, discount rates, and estimates of costs to carry and obtain a tenant. For properties acquired with
in-place
leases, the purchase price of real estate is allocated to the tangible and intangible assets and liabilities acquired based on their relative fair values. In making estimates of fair values for this purpose, a number of sources are used, including independent appraisals and information obtained about each property as a result of
pre-acquisition
due diligence, marketing and leasing activities.
Carrying Value of Real Estate Investments
The Company’s real estate properties are recorded at cost and depreciated using the straight-line method over the estimated remaining useful lives of the properties, which generally range from 20 to 50 years for buildings and improvements and from 5 to 20 years for land improvements. Properties classified as held for sale are not depreciated. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated selling costs.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Held for Sale
The Company is continually evaluating the portfolio of real estate assets and may elect to dispose of assets considering criteria including, but not limited to, tenant concentration, tenant credit quality, unit financial performance, local market conditions and lease rates, associated indebtedness, asset location, and tenant operation type
(e.g., industry, sector, or concept/brand). Real
estate assets held for sale are expected to be sold within twelve months.
Lease Intangibles
Lease intangibles, if any, acquired in conjunction with the purchase of real estate represent the value of
in-place
leases and above- or below-market leases. For real estate acquired subject to existing lease agreements,
in-place
lease intangibles are valued based on the Company’s estimate of costs related to acquiring a tenant and the carrying costs that would be incurred during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases at the time of the acquisition. Above- and below-market lease intangibles are recorded based on the present value of the difference between the contractual amounts to be paid pursuant to the leases at the time of acquisition of the real estate and the Company’s estimate of current market lease rates for the property, measured over a period equal to the remaining initial term of the lease and, in certain instances, over the renewal period.
Direct Financing Leases
For real estate property leases classified as direct financing leases, the building portion of the lease is accounted for as a direct financing lease, while the land portion is accounted for as an operating lease when certain criteria are met. For direct financing leases, the Company records an asset which represents the net investment that is determined by using the aggregate of the total amount of future minimum lease payments, the estimated residual value of the leased property and deferred incremental direct costs less unearned income. Income is recognized over the life of the lease to approximate a level rate of return on the net investment. Residual values, which are reviewed annually, represent the estimated amount the Company expects to receive at lease termination from the disposition of the leased property. Actual residual values realized could differ from these estimates.
Impairments
The Company reviews its real estate investments and related lease intangibles periodically for indicators of impairment, including, but not limited to: the asset being held for sale, vacant
,
tenant bankruptcy or delinquency, and leases expiring in 60 days or less. For assets with indicators of impairment, the Company then evaluates if its carrying amount may not be recoverable. The Company considers factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors in making this assessment. An asset is considered impaired if its carrying value exceeds its estimated undiscounted cash flows.
Impairment is then calculated as the amount by which the carrying value exceeds the estimated fair value, or for assets held for sale, as the amount by which the carrying value exceeds fair value less costs to sell. Estimating fair values is highly subjective and such estimates could differ materially from actual results. Key assumptions used in estimating fair values include, but are not limited to: signed purchase and sale agreements or letters of intent; recently quoted bid or ask prices, or market prices for comparable properties; estimates of residual values, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, expenses based upon market conditions and capitalization rates; and expectations for the use of the real estate.
Gain or Loss on Disposition of Assets
When real estate properties are disposed of, the related net book value of the properties is removed and a gain or loss on disposition is recognized in our consolidated statements of operations as the difference between the proceeds from the disposition, net of any costs to sell, and the net book value. As leasing is the Company’s primary activity, the
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Company determined that its sales of real estate, which are nonfinancial assets, are sold to noncustomers and fall within the scope of ASC
610-20.
The full gain or loss on the disposition of real estate properties is recognized at time of sale provided that the Company (i) has no controlling financial interest in the real estate and (ii) has no continuing interest or obligation with respect to the disposed real estate.
Revenue Recognition
Rental Income: Cash and Straight-line Rent
The Company primarily leases real estate to its tenants under long-term,
triple-net
leases that are classified as operating leases. To evaluate lease classification, the Company assesses the terms and conditions of the lease to determine the appropriate lease term. The majority of our operating leases include one or more options to extend, typically for a period of five to ten years per renewal option. Excluding Walgreen Co., less than 1% of the Company’s operating leases at December 31, 2020 include an option to terminate. Walgreen Co. leases are generally for fifty years or more with several five-year termination periods after an initial
non-cancellable
term. Less than 10% of the Company’s operating leases at December 31, 2020 include an option to purchase, where the purchase option is generally determined based on fair market value of the underlying property. The Company does not include options to extend, terminate or purchase in its evaluation for lease classification purposes or for recognizing rental income unless the Company is reasonably certain the tenant will exercise the option.
Another component of lease classification that requires judgment is the residual value of the property at the end of the lease term. For acquisitions, the Company assumes a value that is equal to the tangible value of the property at the date of the assessment. For lease modifications, the Company generally uses sales comparables or a direct capitalization approach to determine fair value. The Company seeks to protect residual value through its underwriting of acquisitions, incorporating the proprietary Spirit Property Ranking Model which is real estate centric. Once a property is acquired, the lessee is responsible for maintenance of the property, including insurance protecting any damage to the property. To further protect residual value, the Company supplements the tenant insurance policy with a master policy covering all properties owned by the Company. As an active manager, the Company will occasionally invest in capital improvements on properties,
re-lease
properties to new tenants or extend lease terms to protect residual value.
The Company’s leases generally provide for rent escalations throughout the term of the lease. For leases with fixed rent escalators, rental income is recognized on a straight-line basis to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental revenue, calculated as the aggregate difference between the rental revenue recognized on a straight-line basis and scheduled rents, represents unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the initial term of the leases. For leases with contingent rent escalators, rental income typically increases at a multiple of any increase in the CPI over a specified period and may adjust over a
one-year
period or over multiple-year periods. Because of the volatility and uncertainty with respect to future changes in the CPI and the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases, increases in rental revenue from leases with this type of escalator are recognized when the changes in the rental rates have occurred.
Some of the Company’s leases also provide for contingent rent based on a percentage of the tenant’s gross sales, which is recognized as rental income when the change in the factor on which the contingent lease payment is based actually occurs.
Rental income is subject to an evaluation for collectability, which includes management’s estimates of amounts that will not be realized based on an assessment of the risks inherent in the portfolio, considering historical experience, as well as the tenant’s payment history and financial condition. The Company does not recognize rental income for amounts that are not probable of collection.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Rental Income: Tenant Reimbursement Revenue
Under a
triple-net
lease, the tenant is typically responsible for all improvements and is contractually obligated to pay all property operating expenses, such as real estate taxes, insurance premiums and repair and maintenance costs. Certain leases contain additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, which are
non-lease
components. The Company has elected to combine all its
non-lease
components, which were determined to have the same pattern of transfer as the related operating lease component, into a single combined lease component. Tenant reimbursement revenue is variable and is recognized as revenue in the period in which the related expenses are incurred, with the related expenses included in property costs (including reimbursable) on the Company’s consolidated statements of operations. Tenant reimbursements are recorded on a gross basis in instances when our tenants reimburse us for property costs which we incur. Tenant receivables are reduced for amounts that are not probable of collection.
Rental Income: Intangible Amortization
Initial direct costs associated with the origination of a lease are deferred and amortized as an adjustment to rental revenue. Above-market and below-market lease intangibles are amortized as a decrease and increase, respectively, to rental revenue.
In-place
lease intangibles are amortized on a straight-line basis and included in depreciation and amortization expense. All lease intangibles are amortized over the remaining term of the respective leases, which includes the initial term of the lease and may also include the renewal periods if the Company believes it is reasonably certain the tenant will exercise the renewal option. If the Company subsequently determines it is reasonably certain that the tenant will not exercise the renewal option, the unamortized portion of any related lease intangible is accelerated over the remaining initial term of the lease. If the Company believes the intangible balance is no longer recoverable, the unamortized portion of any related lease intangible is immediately recognized in impairments in the Company’s consolidated statements of operations.
Other Income: Lease Termination Fees
Lease termination fees are included in other income on the Company’s consolidated statements of operations and are recognized when there is a signed termination agreement and all of the conditions of the agreement have been met. The Company recorded lease termination fees of $0.7 million, $0.4 million and $0.3 million during the years ended December 31, 2020, 2019 and 2018, respectively.
Loans Receivable
Loans receivable consists of mortgage loans, net of premium, and notes receivables. Interest on loans receivable is recognized using the effective interest rate method. In September 2020, all the Company’s first-priority mortgage loans were fully paid off. A loan is placed on
non-accrual
status when the loan has become
60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on
non-accrual
status, interest income is recognized only when received. No loans receivable were on
non-accrual
status as of December 31, 2019. Delinquent loans receivable are written off against the allowance when all possible means of collection have been exhausted.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money market funds of major financial institutions with fund investments consisting of highly-rated money market instruments and other short-term instruments. Restricted cash is classified within deferred costs and other assets, net in the accompanying consolidated balance sheets. Cash, cash equivalents and restricted cash consisted of the following (in thousands):
 
    
  December 31,  

2020  
   
  December 31,  

2019  
 
  December 31,  

2018  
 
Cash and cash equivalents
   $ 70,303       $ 14,492     $ 14,493  
Restricted cash:
                        
Collateral deposits 
(1)
     335         347       351  
Tenant improvements, repairs and leasing commissions 
(2)
     12,660         10,877       9,093  
Master Trust Release 
(3)
     —               7,412  
1031 Exchange proceeds, net
     —               45,042  
Other 
(4)
     —         307       1,030  
    
 
 
   
 
 
 
 
 
 
 
Total cash, cash equivalents and restricted cash
   $             83,298       $             26,023       $ 77,421  
    
 
 
   
 
 
 
 
 
 
 
 
(1)
 
Funds held in lender-controlled accounts generally used to meet future debt service or certain property operating expenses.
(2)
 
Deposits held as additional collateral support by lenders to fund improvements, repairs and leasing commissions incurred to secure a new tenant.
(3)
 
Proceeds from the sale of assets pledged as collateral under either Master Trust 2013 or Master Trust 2014, which were held on deposit until a qualifying substitution was made or the funds were applied as prepayment of principal. The Master Trust 2014 notes were included in the
Spin-Off
to SMTA. The Master Trust 2013 notes were extinguished in June 2019.
(4)
 
Funds held in lender-controlled accounts released after scheduled debt service requirements are met.
Tenant Receivables
The Company reviews its rent and other tenant receivables for collectability on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates, and economic conditions in the area in which the tenant operates. If the collectability of a receivable with respect to any tenant is not probable of collection, a direct
write-off
of the specific receivable will be made. The Company had accounts receivable balances of $29.5 million and $7.7 million at December 31, 2020 and 2019, respectively, after the impact of $13.1 million and $3.8 million of receivables, respectively, were deemed not probable of collection. Receivables are recorded within deferred cost and other assets, net in the accompanying consolidated balance sheets.
For receivable balances related to the straight-line method of reporting rental revenue, the collectability is assessed in conjunction with the evaluation of rental income as described above. The Company had straight-line rent receivables of $93.1 million and $83.6 million at December 31, 2020 and 2019, respectively, after the impact of $14.5 million and $0.4 million of receivables, respectively, were deemed not probable of collection. These receivables are recorded within deferred costs and other assets, net in the accompanying consolidated balance sheets.
Goodwill
Goodwill arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value amounts that were assigned to the identifiable assets acquired and the liabilities assumed. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The FASB issued ASU
2017-04,
Simplifying the Test for Goodwill Impairment,
which the
Company adopted 
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
effective January 1, 2020. ASU
2017-04
simplifies the accounting for goodwill impairment by eliminating the Step 2 requirement to calculate the implied fair value of goodwill. Instead, an entity should compare the fair value of each reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. No impairment was recorded for the periods presented. The
Spin-Off
of SMTA did qualify as a disposition of a business, resulting in a reduction in goodwill.
The following table presents a reconciliation of the Company’s goodwill (in thousands):
 
    
      Consolidated      
Balance as of December 31, 2017
   $ 254,340  
Goodwill allocated to dispositions of a business
(Spin-Off
of SMTA)
     (28,740
    
 
 
 
Balance as of December 31, 2018
     225,600  
Goodwill allocated to dispositions of a business
      
    
 
 
 
Balance as of December 31, 2019
     225,600  
Goodwill allocated to dispositions of a business
      
    
 
 
 
Balance as of December 31, 2020
   $                     225,600  
    
 
 
 
Accounting for Derivative Financial Instruments and Hedging Activities  
The Company may utilize derivative instruments such as interest rate swaps for purposes of hedging exposures to fluctuations in interest rates associated with certain of its financing transactions. At the inception of a hedge transaction, the Company enters into a contractual arrangement with the hedge counterparty and formally documents the relationship between the derivative instrument and the financing transaction being hedged, as well as its risk management objective and strategy for undertaking the hedge transaction. The fair value of the derivative instrument is recorded on the balance sheet as either an asset or liability. At inception and at least quarterly thereafter, a formal assessment is performed to determine whether the derivative instrument has been highly effective in offsetting changes in cash flows of the related financing transaction and whether it is expected to be highly effective in the future. The Company recognizes the entire change in the fair value of cash flow hedges included in the assessment of hedge effectiveness in other comprehensive (loss) income. The amounts recorded in other comprehensive (loss) income will subsequently be reclassified to earnings when the hedged item affects earnings.
Income Taxes
The Corporation has elected to be taxed as a REIT under the Code. As a REIT, the Corporation generally will not be subject to federal income tax provided it continues to satisfy certain tests concerning the Company’s sources of income, the nature of the Company’s assets, the amounts distributed to the Corporation’s stockholders and the ownership of Corporation stock. Management believes the Corporation has qualified and will continue to qualify as a REIT and, therefore, no provision has been made for federal income taxes in the accompanying consolidated financial statements. Even if the Corporation qualifies for taxation as a REIT, it may be subject to state and local income and franchise taxes, and to federal income tax and excise tax on its undistributed income.
Taxable income earned by any of the Company’s taxable REIT subsidiaries, including from
non-REIT
activities, is subject to federal, state and local taxes. The rights and obligations of the Asset Management Agreement were transferred to SRAM, a wholly-owned taxable REIT subsidiary of Spirit, on April 1, 2019, which was subsequently terminated and simultaneously replaced by the Interim Management Agreement between SRAM and SMTA, effective from September 20, 2019
through its termination effective September
 4, 2020. Accordingly, all asset management fees earned from April 1, 2019 through September 4, 2020, including the termination fee income earned in September 2019, were subject to income tax. See Note 13 for additional discussion.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The Operating Partnership is a partnership for federal income tax purposes. Partnerships are pass-through entities and are not subject to U.S. federal income taxes, therefore no
provision has been made for federal income taxes in the accompanying financial statements. Although most states and cities where the Operating Partnership operates follow the U.S. federal income tax treatment, there are certain jurisdictions such as Texas, Tennessee and Ohio that impose income or franchise taxes on a partnership. Franchise taxes are included in general and administrative expenses on the accompanying consolidated statements of operations.
Earnings Per Share and Unit
The Company’s unvested restricted common stock, which contains
non-forfeitable
rights to receive dividends, are considered participating securities requiring the
two-class
method of computing earnings per share and unit. Under the
two-class
method, earnings attributable to unvested restricted shares are deducted from income from continuing operations in the computation of net income attributable to common stockholders. Under the
two-class
method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the
two-class
method, undistributed earnings are allocated to both common shares and participating securities based on their respective weighted average shares outstanding during the period. Under the terms of the Amended Incentive Award Plan, restricted stock awards (see Note 9) are not allocated losses, including undistributed losses as a result of dividends declared exceeding net income. The Company uses income or loss from continuing operations as the basis for determining whether potential common shares are dilutive or
anti-dilutive
and undistributed net income or loss as the basis for determining whether undistributed earnings are allocable to participating securities.
Forward Equity Sale Agreements
The Company may enter into forward sale agreements for the sale and issuance of shares of our common stock, either through an underwritten public offering or through our ATM Program. These agreements may be physically settled in stock, settled in cash, or net share settled at the Company’s election. The Company evaluated the forward sale agreements and concluded they meet the conditions to be classified within stockholders’ equity. Before any issuance of shares of our common stock to physically settle a forward sale agreement, such forward sale agreement will be reflected in our diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of our common stock used in diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of our common stock that would be issued upon full physical settlement of such forward sale agreement over the number of shares of our common stock that could be purchased by us in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). Consequently, prior to physical settlement or net share settlement of a forward sale agreement, there will be no dilutive effect on our earnings per share except during periods when the average market price of our common stock is above the adjusted forward sale price. However, if we decide to physically settle or net share settle such forward sale agreement, delivery of our shares on any physical settlement or net share settlement of the forward sale agreement will result in dilution to our earnings per share.
Unaudited Interim Information
The consolidated quarterly financial data in Note 14 is unaudited. In the opinion of management, this financial information reflects all adjustments necessary for a fair presentation of the respective interim periods. All such adjustments are of a normal recurring nature.
New Accounting Pronouncements
In June 2016, the FASB issued ASU
2016-13,
Measurement of Credit Losses on Financial Instruments
, which requires more timely recognition of credit losses associated with financial assets. ASU
2016-13
requires financial assets (or a group of financial assets) measured at an amortized cost basis to be presented at the net amount
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
expected to be collected. ASU
2016-13
is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and as such, the Company adopted ASU
2016-13
effective
January 1, 2020. Per the subsequently issued ASU
2018-19,
receivables arising from operating leases are not within the scope of ASU
2016-13.
The Company reviewed receivables within the scope of ASU
2016-13
totaling $40.3 million as of January 1,
 2020, which were comprised of loans receivable and real estate assets held under direct financing lease. There were no amounts past due related to these receivables. As such, the Company determined the key credit quality indicator was the credit rating of the borrower, coupled with remaining time to maturity. As a result, the adoption ASU
2016-13
resulted in the recognition of a loss of $0.3 million on January 1, 2020, which was recorded in impairments on the accompanying consolidated statement of operations.
In April 2020, the FASB released a Staff Q&A regarding the accounting for lease concessions related to the effects of the
COVID-19
pandemic. The FASB noted that the underlying premise in requiring a modified lease to be accounted for as if it were a new lease under ASC 842 is that the modified terms and conditions affect the economics of the lease for the remainder of the lease term. As such, the FASB staff clarified that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the
COVID-19
pandemic consistent with how those concessions would be accounted for under ASC 842 as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). The Company made this election and accounts for rent deferrals by increasing the rent receivables as receivables accrue and continuing to recognize income during the deferral period, resulting in $26.3 million of deferrals being recognized in rental income for the year ended December 31, 2020. The deferral periods range generally from one to six months, with an average deferral period of four months and an average repayment period of 12 months. Lease concessions other than rent deferrals are evaluated to determine if a substantive change to the consideration in the original lease contract has occurred and should be accounted for as a lease modification. Management continues to evaluate any amounts recognized for collectability, regardless of whether accounted for as a lease modification or not, and records a provision for losses against rental income for amounts that are not probable of collection. For lease concessions granted in conjunction with the
COVID-19
pandemic, management reviewed all amounts recognized on a
tenant-by-tenant
basis for collectability.
NOTE 3. INVESTMENTS
Owned Properties
As of December 31, 2020, the Company’s gross investment in owned real estate properties totaled approximately $6.8 billion. The gross investment is comprised of land, buildings, lease intangible assets and lease intangible liabilities, as adjusted for any impairment, and real estate assets held under direct financing leases and real estate assets held for sale. The portfolio is geographically dispersed throughout 48 states with Texas, at 10.7%, as the only state with a gross investment greater than 10.0% of the total gross investment of the Company’s entire portfolio.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
During the years ended December 31, 2020 and 2019, the Company had the following real estate activity, net of accumulated depreciation and amortization (dollars in thousands):
 
    
Number of Properties
 
Dollar Amount of Investments
   
Held in Use
   
Held for Sale
   
Total
   
Held in Use
   
Held for Sale
   
Total
 
Gross balance, December 31, 2018
         1,459       3       1,462     $     5,054,523     $ 22,064     $ 5,076,587  
Acquisitions/improvements 
(1)
     334             334       1,344,843             1,344,843  
Dispositions of real estate 
(2)(3)
     (16     (28     (44     (98,327     (140,909     (239,236
Transfers to Held for Sale
     (27     27             (128,396     128,396        
Impairments 
(4)
                       (18,974     (5,117     (24,091
Reset of gross balances 
(5)
                       (12,894     (3,211     (16,105
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Gross balance, December 31, 2019
     1,750       2       1,752       6,140,775       1,223       6,141,998  
Acquisitions/improvements 
(1)
     146             146       880,897             880,897  
Dispositions of real estate 
(2)
     (20     (18     (38     (53,985     (32,028     (86,013
Transfers to Held for Sale
     (23     23             (72,912     72,912        
Impairments 
(4)
                       (70,376     (11,100     (81,476
Res
e
t of gross balances 
(5)
                       (45,386     (3,243     (48,629
Other
                       (1,340    
 
 
      (1,340
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Gross balance, December 31, 2020
     1,853       7       1,860     $ 6,777,673     $ 27,764     $ 6,805,437  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Accumulated depreciation and amortization
                             (981,866     (1,943     (983,809
       
 
 
   
 
 
   
 
 
 
Net balance, December 31, 2020 
(6)
                           $     5,795,807     $ 25,821     $ 5,821,628  
       
 
 
   
 
 
   
 
 
 
 
(1)
 
Includes investments of $10.0 million and $45.0 million, respectively, in revenue producing capitalized expenditures, as well as $2.5 million and $4.6 million, respectively, of
non-revenue
producing capitalized expenditures for the years ended December 31, 2020 and 2019.
(2)
 
The total gain on disposal of assets for properties held in use was $10.2 million, $26.5 million and $1.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total gain on disposal of assets for properties held for sale was $14.2 million, $32.4 million and $13.0 million for the years ended December 31, 2020, 2019 and 2018, respectively.
(3)
 
Includes one
deed-in-lieu
property with a real estate investment of $0.8 million that was transferred to the lender during the year ended December 31, 2019.
(4)
 
Impairments on owned real estate is comprised of real estate and intangible asset impairment and allowance for credit losses on direct financing leases.
(5)
 
Represents
write-off
of gross investment balances against the related accumulated depreciation and amortization balances as a result of basis reset due to impairment or intangibles which have been fully amortized.
(6)
 
Reconciliation of total owned investments to the accompanying consolidated balance sheet at December 31, 2020 is as follows:
 
Net investments
     5,943,530  
Intangible lease liabilities, net
     (121,902
    
 
 
 
Net balance
   $         5,821,628  
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Operating Leases
As of December 31, 2020, 2019, and 2018, the Company held 1,852, 1,745, and 1,453 properties under operating leases, respectively. The following table summarizes the components of rental income recognized on these operating leases in the accompanying consolidated statements of operations (in thousands):
 
    
For the Year Ended December 31,
 
    
2020
    
2019
    
2018
 
Base Cash Rent 
(1)
   $ 453,013        $ 404,720        $ 466,658    
Variable cash rent (including reimbursables)
     13,176          12,737          14,931    
Straight-line rent, net of uncollectible reserve 
(2)
     11,876          16,924          16,461    
Amortization of above
-
and below
-
market lease intangibles, net 
(3)
     1,836          4,310          4,943    
    
 
 
    
 
 
    
 
 
 
Total rental income
   $         479,901        $         438,691        $         502,993    
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Includes net impact of (amounts not deemed probable of collection)/amounts recovered of $(10.9) million, $0.4 million, and $
(
0.5
)
 million for the years ended December 31, 2020, 2019 and 2018, respectively.
(2)
 
Includes net impact of amounts not deemed probable for collection of $14.9 million, $0.2 million, and
$0.1 mi
l
lion
for the years ended December 31, 2020, 2019 and 2018, respectively. As a
 
result of the Company’s adoption of ASU
2016-02
on January 1, 2019, the Company reclassified bad debt expense to rental income on a prospective basis.
(3)
 
Excludes amortization of in-place leases of
 $34.8 million, $29.8 million,
and $32.6 million for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations.
Scheduled minimum future contractual rent to be received under the remaining
non-cancellable
term of these operating leases (including contractual fixed rent increases occurring on or after January 1, 2021) at December 31, 2020 are as follows (in thousands):
 
    
        December 31,        

2020
2021
   $ 505,018       
2022
     495,232       
2023
     477,604       
2024
     455,840       
2025
     442,818       
Thereafter
     3,207,076       
    
 
 
 
Total future minimum rentals
   $               5,583,588       
    
 
 
 
Because lease renewal periods are exercisable at the lessees’ options, the preceding table presents future minimum lease payments due during the initial lease term only. In addition, the future minimum rentals do not include any contingent rentals based on a percentage of the lessees’ gross sales or lease escalations based on future changes in the CPI.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The following table details lease intangible assets and liabilities, net of accumulated amortization (in thousands):
 
    
        December 31,        

2020
 
        December 31,        

2019
In-place
leases
   $ 473,062      $ 457,616  
Above-market leases
     83,185       95,002  
Less: accumulated amortization
     (188,258     (167,539
    
 
 
 
 
 
 
 
Intangible lease assets, net
   $ 367,989         $ 385,079      
    
 
 
 
 
 
 
 
     
Below-market leases
   $ 178,614     $ 176,816  
Less: accumulated amortization
     (56,712     (49,481
    
 
 
 
 
 
 
 
Intangible lease liabilities, net
   $                 121,902     $                 127,335  
    
 
 
 
 
 
 
 
The remaining weighted average amortization period for in-place leases, above-market leases, below-market leases and in total was 12.8 years, 11.0 years, 17.4 years and 13.7 years, respectively, as of December 31, 2020. The remaining weighted average amortization period for in-place leases, above-market leases, below-market leases and in total was
13.4 years, 10.9 years, 18.1 years and 14.2
years, respectively, as of December 31, 2019. During the year ended December 31, 2020, the Company acquired in-place lease intangible assets of $47.7 million, above-market lease intangible assets of $3.5 million and below-market lease intangible liabilities of $6.3 million. During the year ended December
 31, 2019, the Company acquired
in-place
lease intangible assets of $100.3 million, above-market lease intangible assets of $33.3 million and below-market lease intangible liabilities of $20.9 million.
Based on the balance of intangible assets and liabilities at December 31, 2020, the net aggregate amortization expense for the next five years and thereafter is expected to be as follows (in thousands):
 
 
  
December 31,

2020
2021
   $ 32,658   
2022
     30,592  
2023
     28,936  
2024
     26,917  
2025
     23,503  
Thereafter
     103,481  
    
 
 
 
Total future minimum amortization
   $                246,087  
    
 
 
 
Direct Financing Leases
As of December 31, 2019, the Company held two properties under direct financing leases, which were held in use.
During the year ended
December 31, 2020, one of the properties was reclassified to an operating lease. For the remaining property held under direct financing lease, the property had
$3.6 million in scheduled minimum future payments to be received under its remaining
non-cancellable
lease term as of December 31, 2020. The
Company evaluated the collectability of the amounts receivable under the direct financing lease and recorded a reserve for uncollectible amounts totaling $0.3 million in the first quarter of 2020, primarily as a result of the borrower’s credit rating being
non-investment
grade and the initial term extending until 2027. The Company reversed $0.2 million of the reserve in the third quarter of 2020 as a result of improvement in the borrower’s credit and, as of December 31, 2020, there was a remaining reserve of $0.1 million against the net investment balance of $7.6 million.
Loans Receivable
As of December 31, 2019, the Company held two first-priority mortgage loans. The mortgage loans were secured by single-tenant commercial properties and had fixed interest rates over the term of the loans. There were two other
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
notes receivable as of December 31, 2019. One was secured by tenant assets and stock with a principal outstanding of $37 thousand, and the other was unsecured with a balance of $1.9 million as of December 31,
2019.
As of December 31, 2020, all of the Company’s loans receivable
were
 fully paid off. The Company had evaluated the collectability of the amounts receivable under the loans receivable and recorded an allowance for loan losses of $0.3 million in the first quarter of 2020, primarily driven by the borrowers’ having investment grade credit ratings and maturities in 2020. The Company reversed $0.2 million of the reserve in the second quarter of 2020 due to the shorter time to maturity and no change in the borrower’s credit ratings. The remaining $0.1 million of the reserve was reversed during the third quarter of 2020 due to the repayment of the remaining loans.
During the years ended December 31, 2020 and 2019, the Company had the following loan activity (dollars in thousands):
 
    
Mortgage Loans
 
Other Notes
 
Total
    
Properties  
 
Investment  
 
Investment  
 
Investment  
Principal, December 31, 2018
     52      $       42,660     $       2,082     $       44,742   
Principal payments and payoffs
     (9     (10,927     (110     (11,037
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal, December 31, 2019
     43       31,733       1,972       33,705  
Principal payments and payoffs
     (43     (31,733     (1,972     (33,705
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal, December 31, 2020
             —     $     $     $  
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairments and Allowance for Credit Losses
The following table summarizes total impairments and allowance for credit losses recognized in continuing and discontinued operations on the accompanying consolidated statements of operations (in thousands):
 
    
        Year Ended December 31,        
    
      2020        
 
        2019        
 
        2018        
Real estate
 
asset impairment
   $ 59,206      $ 24,130      $ 17,193   
Intangible asset impairment (recovery)
     22,118       (39     492  
Allowance for credit losses on direct financing leases
     152       —         
Reversal for credit losses on loans receivable
           —        (17
  
 
 
 
 
 
 
 
 
 
 
 
Total impairment loss
   $     81,476     $     24,091      $     17,668  
    
 
 
 
 
 
 
 
 
 
 
 
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
NOTE 4. DEBT
The debt of the Company and the Operating Partnership are the same, except for the presentation of the Convertible Notes which were issued by the Company. Subsequently, an intercompany note between the Company and the Operating Partnership was executed with terms identical to those of the Convertible Notes. Therefore, in the consolidated balance sheet of the Operating Partnership, the amounts related to the Convertible Notes are reflected as notes payable to Spirit Realty Capital, Inc., net. The Company’s debt is summarized below (dollars in thousands):
 
   
2020 Weighted

Average Effective

Interest Rates
 (1)
   
2020 Weighted

Average Stated

Rates
 (2)
   
2020 Weighted

Average Remaining
Years to Maturity
 (3)
   
December 31,

2020
   
December 31,

2019
 
Revolving credit facilities
     5.12%               2.3      $      $ 116,500   
Term loans
     2.57%        1.65%        1.3        178,000        
Senior Unsecured Notes
     3.80%        3.61%        8.2        1,950,000       1,500,000  
CMBS
     5.80%        5.47%        2.8        214,237       218,338  
Convertible Notes
           5.54%              3.75%                0.4        190,426       345,000  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
 
 
 
Total debt
     4.05%        3.64%        6.7        2,532,663       2,179,838  
Debt discount, net
                                (7,807     (9,272
Deferred financing costs, net
(4)
                                (18,515     (17,549
                               
 
 
 
 
 
 
 
Total debt, net
                              $   2,506,341     $   2,153,017  
                               
 
 
 
 
 
 
 
(1)
 
The effective interest rates include amortization of debt discount/premium, amortization of deferred financing costs, facility fees, and
non-utilization
fees, where applicable, calculated for the year ended December 31, 2020 and based on the average principal balance outstanding during the period.
(2)
 
Represents the weighted average stated interest rate based on the outstanding principal balance as of December 31, 2020.
(3)
Represents the weighted average remaining years to maturity based on the outstanding principal balance as of December 31, 2020.
(4)
 
The Company records deferred financing costs for its revolving credit facilities in deferred costs and other assets, net on its consolidated balance sheets.
Deferred financing costs and offering discount/premium incurred in connection with entering into debt agreements are amortized to interest expense over the initial term of the respective agreements. Both deferred financing costs and offering discount/premium are recorded net against the principal debt balance on the accompanying consolidated balance sheets, except for deferred costs related to revolving credit facilities, which are recorded in deferred costs and other assets, net.
Revolving Credit Facilities
On January 14, 2019, the Operating Partnership entered into the 2019 Revolving Credit and Term Loan Agreement, comprised of the 2019 Credit Facility and the
A-1
Term Loans, which replaced the 2015 Credit Facility and 2015 Term Loan, respectively. The 2019 Credit Facility is comprised of $800.0 million of aggregate revolving commitments with a maturity date of March 31, 2023 and includes two
six-month
extensions that can be exercised at the Company’s option. The 2019 Revolving Credit and Term Loan Agreement includes an accordion feature providing for an additional $400.0 million of revolving borrowing capacity, subject to satisfying certain requirements. Borrowings may be repaid, in whole or in part, at any time, without premium or penalty, but subject to applicable LIBOR breakage fees, if any. Payment is unconditionally guaranteed by the Company and material subsidiaries that meet certain conditions. The 2019 Credit Facility is full recourse to the Operating Partnership and the aforementioned guarantors.
As of December 31, 2020, outstanding loans under the 2019 Credit Facility bore interest at
1-Month
LIBOR plus an applicable margin of 0.90% per annum and the aggregate revolving commitments incurred a facility fee of 0.20%
per annum, in each case, based on the Operating Partnership’s credit rating, which was upgraded to BBB by S&P in May 2019. Prior to the upgrade, outstanding loans bore interest at LIBOR plus an applicable margin of 1.10% per annum and the aggregate revolving commitments incurred a facility fee of 0.25% per annum.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The
 
unamortized deferred financing costs were $
2.6
 million as of December 
31
,
2020
, compared to $
3.7
 million as of December 
31
,
2019
. As of December 
31
,
2020
, the full $
800.0
 million of borrowing capacity was available under the
2019
Credit Facility and there were
no
outstanding letters of credit. The Operating Partnership’s ability to borrow under the
2019
Credit Facility is subject to ongoing compliance with a number of customary financial and other affirmative and negative covenants, all of which the Company and the Operating Partnership were in compliance with as of December 
31
,
2020
.
Term Loans
As discussed above, on January 14, 2019, the Operating Partnership entered into the 2019 Revolving Credit and Term Loan Agreement, which included the
A-1
Term Loans. The
A-1
Term Loans had an aggregate borrowing amount of $420.0 million, a maturity date of March 31, 2024 and an accordion feature for an additional $200.0 million of term loans, subject to satisfying certain requirements. In addition, on January 14, 2019, the Operating Partnership entered into the
A-2
Term Loans, with an aggregate of $400.0 million of delayed draw term loans, a maturity date of March 31, 2022 and an accordion feature for an additional $200.0 million of term loans, subject to satisfying certain requirements. The Company drew on the
A-2
Term Loans to retire the 2.875% Convertible Notes upon their maturity in May 2019.
The
A-1
Term Loans and
A-2
Term Loans bore interest at LIBOR plus an applicable margin of 1.00% per annum based on the Operating Partnership’s credit rating after the upgrade in May 2019. Prior to the upgrade, they bore interest at LIBOR plus an applicable margin of 1.25%. In addition, a ticking fee accrued on the unused portion of the
A-2
Term Loans at a rate of 0.20% until the earlier of July 12, 2019 or the termination of the commitments. On September 16, 2019, in connection with the issuance of the 2027 Senior Unsecured Notes and 2030 Senior Unsecured Notes described below, the Company repaid the
A-1
Term Loans and
A-2
Term Loans in full.
On
April 2, 2020
, the Operating Partnership entered into the 2020 Term Loan Agreement, which provided for $200.0 million of unsecured term loans with a maturity date of April 2, 2022. The 2020 Term Loan Agreement included an accordion feature, which the Operating Partnership fully exercised in the second quarter of 2020 to borrow an additional $200.0 million of term loans. As of December 31, 2020, the 2020 Term Loans bore interest at LIBOR plus an applicable margin of 1.50% per annum, based on the Operating Partnership’s credit rating. In connection with entering into the 2020 Term Loan Agreement, the Company incurred $2.5 million in deferred financing costs.
On August 6, 2020, the issuance of the 2031 Senior Unsecured Notes described below triggered a mandatory prepayment under the 2020 Term Loan Agreement. As such, the Company repaid $222.0 million of the 2020 Term Loans and
wrote-off
$1.0 million of related unamortized deferred financing costs.
As of December 31, 2020, the remaining unamortized deferred financing costs were $0.7 million. The Company and Operating Partnership are subject to ongoing compliance with a number of customary financial and other affirmative and negative covenants in relation to the borrowings under the 2020 Term Loan Agreement, all of which the Company and the Operating Partnership were in compliance with as of December 31, 2020. On January 4, 2021, the Company repaid the 2020 Term Loans in full.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Senior Unsecured Notes
The Senior Unsecured Notes were issued by the Operating Partnership and guaranteed by the Company. The following is a summary of the Senior Unsecured Notes outstanding (dollars in thousands):
 
    
Maturity Date
  
Stated Interest
Rate
 
December 31,

2020
  
December 31,

2019
2026 Senior Notes
     September 15, 2026        4.45   $ 300,000      $ 300,000    
2027 Senior Notes
     January 15, 2027        3.20     300,000        300,000  
2029 Senior Notes
     July 15, 2029        4.00     400,000        400,000  
2030 Senior Notes
     January 15, 2030        3.40     500,000        500,000  
2031 Senior Notes
     February 15, 2031        3.20     450,000         
             
 
 
 
 
 
 
 
  
 
 
 
Total Senior Unsecured Notes
                          3.61   $         1,950,000      $           1,500,000  
             
 
 
 
 
 
 
 
  
 
 
 
On June 27, 2019, the Operating Partnership issued $400.0 million aggregate principal amount of 2029 Senior Unsecured Notes, resulting in net proceeds of $395.9 million. In connection with the June 2019 offering, the Operating Partnership incurred $3.8 million in deferred financing costs and an offering discount of $0.3 million. On September 16, 2019, the Operating Partnership issued $300.0 million aggregate principal amount of 2027 Senior Unsecured Notes, resulting in net proceeds of $297.0 million, and $500.0 million aggregate principal amount of 2030 Senior Unsecured Notes, resulting in net proceeds of $494.2 million. In connection with the September 2019 offering, the Operating Partnership incurred $7.3 million in deferred financing costs and an offering discount of $1.5 million. On August 6, 2020, the Operating Partnership issued $450.0 million aggregate principal amount of 2031 Senior Notes, resulting in net proceeds of $441.3 million. In connection with the August 2020 offering, the Operating Partnership incurred $4.2 million in deferred financing costs and an offering discount of $4.5 million.
Interest on the Senior Unsecured Notes is payable on January 15 and July 15 of each year, except for the 2026 Senior Notes, for which interest is payable on March 15 and September 15 of each year, and the 2031 Senior Notes, for which interest is payable on February 15 and August 15 of each year. The Senior Unsecured Notes are redeemable in whole at any time or in part from time to time, at the Operating Partnership’s option, at a redemption price equal to the sum of:
100% of the principal amount of the respective Senior Unsecured Notes to be redeemed plus accrued and unpaid interest and liquidated damages, if any, up to, but not including, the redemption date; and a make-whole premium. If any of the Senior Unsecured Notes are redeemed three months or less (or two months or less in the case of the 2027 Senior Notes) prior to their respective maturity dates, the redemption price will not include a make-whole premium.
As of December 31, 2020 and December 31, 2019, the unamortized deferred financing costs were $15.6 million and $12.9 million, respectively, and the unamortized discount was $7.0 million and $3.0 million, respectively. In connection with the issuance of the Senior Unsecured Notes, the Company and Operating Partnership are subject to ongoing compliance with a number of customary financial and other affirmative and negative covenants, all of which the Company and the Operating Partnership were in compliance with as of December 31, 2020.
CMBS
Indirect wholly-owned special purpose entity subsidiaries of the Company are borrowers under five fixed-rate
non-recourse
loans, which have been securitized into CMBS and are secured by the borrowers’ respective leased properties and related assets. The stated interest rates as of December 31, 2020 for the loans ranged from 5.23% to 6.00%, with a weighted average stated rate of 5.47%. As of December 31, 2020, the
non-defaulted
loans were secured by 88 properties. As of December 31, 2020 and 2019, the unamortized deferred financing costs associated with the CMBS loans were $1.9 million and $2.6 million, respectively, and the unamortized net premium was $0.2 million and $0.3 million,
respectively.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Convertible Notes
In May 2014, the Company issued $402.5 million aggregate principal amount of 2.875% convertible notes due in 2019 and $345.0 million aggregate principal amount of 3.75% convertible notes due in 2021. Proceeds from the
issuance were contributed to the Operating Partnership and are recorded as a note payable to Spirit Realty Capital, Inc. on the consolidated balance sheets of the Operating Partnership. The 2019 Notes matured on May 15, 2019 and were settled in cash. The 2021 Notes will mature on May 15, 2021 and interest is payable semi-annually in arrears on May 15 and November 15 of each year.
The 2021 Notes are convertible only during certain periods and, subject to certain circumstances, into cash, shares of the Company’s common stock, or a combination thereof. The conversion rate is subject to adjustment for certain anti-dilution events, including special distributions and regular quarterly cash dividends exceeding a current threshold of $0.73026 per share. As of December 31, 2020, the conversion rate was 17.4458 per $1,000 principal note, which reflects the adjustment from the SMTA dividend distribution related to the
Spin-Off,
in addition to the other regular dividends declared during the life of the 2021 Notes. Earlier conversion may be triggered if shares of the Company’s common stock trade higher than the established thresholds, if the 2021 Notes trade below established thresholds, or certain corporate events occur. During the year ended December 31, 2020, the Company repurchased $
154.6
 million of the 2021 Notes in cash.
Offering discount and deferred financing costs related to the 2019 Notes were fully amortized in May 2019. As of December 31, 2020 and 2019, the unamortized discount for the 2021 Notes was $1.0 million and $6.5 million, respectively, and the unamortized deferred financing costs were $0.3 million and $2.1 million, respectively. The equity component of the conversion feature was $55.1 million as of both December 31, 2020 and 2019 and is recorded in capital in excess of par value in the accompanying consolidated balance sheets, net of financing transaction costs.
Debt Extinguishment
During the year ended December 31, 2020, the Company extinguished a total of $222.0 million of indebtedness under the 2020 Term Loans, resulting in a loss on debt extinguishment of $1.0 million. Additionally, the Company extinguished a total of $154.6 million aggregate principal amount of the 2021 Convertible Notes, resulting in a loss on debt extinguishment of $6.2 million.
During the year ended December 31, 2019, the Company extinguished a total of $2.0 billion aggregate principal amount of indebtedness, comprised of the following:
   
repayment and termination of $820.0 million of the
A-1
Term Loans and
A-2
Term Loans, resulting in a loss on debt extinguishment of $5.3 million,
   
termination of the 2015 Credit Agreement and 2015 Term Loan Agreement, with $606.7 million of principal balance, resulting in loss on debt extinguishment of $0.7 million,
   
extinguishment upon maturity of the 2019 Notes of the $402.5 million principal balance,
   
retirement of the $165.5 million principal balance of the Master Trust 2013 notes, resulting in a loss on debt extinguishment of $15.0 million, and
   
extinguishment of $52.8 million principal amount of CMBS indebtedness, resulting in a net gain on debt extinguishment of $6.7 million.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Debt Maturities
As of December 31, 2020, scheduled debt maturities, including balloon payments, were as follows (in thousands):
 
    
Scheduled

Principal
 
Balloon

Payment
 
Total
2021
   $ 4,365      $ 190,426     $ 194,791   
2022
     4,617       178,000       182,617  
2023
     3,074       197,912       200,986  
2024
     590              590  
2025
     610       16       626  
Thereafter
     3,000       1,950,053       1,953,053  
    
 
 
 
 
 
 
 
 
 
 
 
Total
   $            16,256     $   2,516,407     $       2,532,663  
    
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
The following table is a summary of the components of interest expense related to the Company’s borrowings (in thousands):
 
    
Year Ended December 31,
    
2020
  
2019
  
2018
Interest expense – revolving credit facilities 
(1)
   $ 3,686       $ 5,201      $ 8,220   
Interest expense – term loans
     3,545         15,448        6,594   
Interest expense – Senior Unsecured Notes
     61,750         29,286        13,350   
Interest expense – mortgages and notes payable
     12,028         18,733        68,530   
Interest expense – Convertible Notes 
(2)
     10,728         17,245        24,509   
Interest expense – interest rate swaps/other
     —         972        —   
Non-cash
interest expense:
                          
Amortization of deferred financing costs
     5,278         6,289        9,306   
Amortization of debt discount, net
     4,343         7,028        13,560   
Amortization of net losses related to interest rate swaps
     2,807         858        —   
    
 
 
 
  
 
 
 
  
 
 
 
Total interest expense
   $         104,165       $         101,060      $          144,069   
    
 
 
 
  
 
 
 
  
 
 
 
 
(1)
 
Includes facility fees of approximately $1.6 million, $2.0 million and $2.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.
 
(2)
 
Included in interest expense on the Operating Partnership’s consolidated statements of operations are amounts paid to the Company by the Operating Partnership related to the notes payable to Spirit Realty Capital, Inc.
 
NOTE 5. STOCKHOLDERS’ EQUITY AND PARTNERS’ CAPITAL
Issuance of Preferred Stock
On October 3, 2017, the Company completed an underwritten public offering of 6.9 million shares of 6.00%
 
Series A Preferred Stock. The Series A Preferred Stock pays cumulative
 cash dividends at the rate of
6.00
% per annum on their liquidation preference of $
25.00
per share (equivalent to $
0.375
per share on a quarterly basis and $
1.50
per share on an annual basis). Dividends are payable quarterly in arrears on or about the last day of March, June, September and December of each year, beginning on December 31, 2017. The Series A Preferred Stock trades on the NYSE under the
symbol
“SRC-A.”
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The Company
 
may not redeem the Series A Preferred Stock prior to October 3, 2022, except in limited circumstances to preserve the Corporation’s status as a real estate investment trust, and pursuant to the special optional redemption provision described below. On and after October 3, 2022, the Company may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $
25.00
per share, plus any accrued and unpaid dividends up to but excluding the redemption date. In addition, upon the occurrence of a change of control, the Company may, at its option, exercise the special optional redemption provision and redeem the Series A Preferred Stock, in whole or in part within
120
days after the first date on which such change of control occurred, by paying $
25.00
per share, plus any accrued and unpaid dividends up to, but not including, the date of redemption.
The preferred stock offering resulted in the Operating Partnership concurrently issuing 6.9 million Series A Preferred Units (“Limited Partner Series A Preferred Units”) that have substantially the same terms as the Series A Preferred Stock.
 
Issuance of Common Stock
In May 2019, the Company entered into forward sale agreements in connection with an offering of 11.5 million shares of common stock at an initial gross offering price of $41.00 per share, before underwriting discounts and offering expenses. The forward purchasers borrowed and sold an aggregate of 11.5 million shares of common stock in the offering. The Company did not receive any proceeds from the sale of its shares of common stock by the forward purchasers at the time of the offering. All 11.5 million of these shares were settled during 2019, generating gross proceeds of $471.5 million.
In June 2020, the Company entered into forward sale agreements in connection with an offering of 9.2 million shares of common stock at an initial public offering price of $37.35 per share, before underwriting discounts and offering expenses. The Company did not receive any proceeds from the sale of its shares of common stock by the forward purchasers at the time of the
offering. All 9.2 million of these shares were settled during 2020, generating net proceeds of $319.1 million.
ATM Program
In November 2016, the Board of Directors approved a $500.0 million ATM Program and the Corporation terminated its prior program. The agreement provided for the offer and sale of shares of the Company’s common stock having an aggregate gross sales price of up to $500.0 million through the agents, as its sales agents or, if applicable, as forward sellers for forward purchasers, or directly to the agents acting as principals. The Company
could
sell shares in amounts and at times to be determined by the Company,
but had no obligation to sell any of the shares in the 2016 ATM Program. Since inception of the 2016 ATM Program through its termination in November 2020,
8.8 million shares of the Company’s common stock had been sold, of which 3.6 million were sold during the year ended December 31, 2020. Of the total shares sold since inception, 7.0 million were through forward sales agreements, including all 3.6 million shares sold during the year ended December 31, 2020. During the year ended December 31, 2020, 2.9 
million of the shares were physically settled, generating net proceeds
of $109.2 million. There were 0.6 million shares remaining under open forward sales agreements as of
December  31, 2020, with a weighted average forward settlement price of $36.17 per share and a final settlement date of September 8, 2021.
In November 2020, the Board of Directors approved a new $500.0 million ATM Program, and the Corporation terminated
its 2016 ATM
program. Since inception of the
2020
ATM Program through December 31, 2020, 3.5 
million 
shares of the Company’s common stock have been sold. All 
3.5
 million
of these shares remained under open forward sale agreements as of December 31, 2020, with a weighted average forward settlement price of $37.02 per share. The final settlement date for 1.4 million of the shares is November 9, 2021 and the final settlement date for the remainder is December 2, 2021. Approximately
$369.7 million remained available under the program as of December 31, 2020.
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
Stock Repurchase Programs
In August 2017, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase of up to $250.0 million of the Company’s common stock. From August 2017 through April 2018, 6.1 million shares of the Company’s common stock were repurchased in open market transactions under this stock repurchase program, at a weighted average price of $40.70 per share, leaving no available capacity. Fees of $0.7 million associated with these repurchases are included in retained earnings.
On May 1, 2018, the Company’s Board of Directors approved a
 new
stock repurchase program, which authorized the Company to repurchase up to $250.0 million of the Company’s common stock. These purchases could be made in the open market or through private transactions from time to time over the
18-month
time period following authorization, depending on prevailing market conditions and applicable legal and regulatory requirements. No shares of the Company’s common stock were repurchased under the program, and the full $250.0 million in gross repurchase capacity expired unused on
November 1, 2019.
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
Dividends Declared
In fiscal years 2020 and 2019, the Company’s Board of Directors declared the following preferred and common stock dividends:
 
Declaration Date
 
  Dividend Per Share  
   
Record Date
   
      Total Amount  
 
Payment Date
 
               
    (in Thousands)
     
2020
                               
Preferred Stock
                               
February 27, 2020
  $ 0.3750        March 13, 2020     $ 2,588        March 31, 2020  
May 22, 2020
    0.3750       June 15, 2020       2,588       June 30, 2020  
August 25, 2020
    0.3750       September 15, 2020       2,587       September 30, 2020  
November 13, 2020
    0.3750       December 15, 2020       2,587       December 31, 2020  
   
 
 
           
 
 
 
       
Total Preferred Dividend
  $ 1.5000             $ 10,350          
Common Stock
                               
February 27, 2020
    0.6250       March 31, 2020     $ 64,338       April 15, 2020  
May 22, 2020
    0.6250       June 30, 2020       64,402       July 15, 2020  
August 25, 2020
    0.6250       September 30, 2020       66,171       October 15, 2020  
November 13, 2020
    0.6250       December 31, 2020       71,748       January 15, 2021  
   
 
 
           
 
 
 
       
Total Common Dividend
  $ 2.5000             $ 266,659          
         
2019
                     
Preferred Stock
                               
February 28, 2019
  $ 0.3750       March 15, 2019     $ 2,588       March 29, 2019  
May 30, 2019
    0.3750       June 14, 2019       2,588       June 28, 2019  
August 13, 2019
    0.3750       September 13, 2019       2,587       September 30, 2019  
November 8, 2019
    0.3750       December 13, 2019       2,587       December 31, 2019  
   
 
 
           
 
 
 
       
Total Preferred Dividend
  $ 1.5000             $ 10,350          
Common Stock
                               
February 28, 2019
    0.6250       March 29, 2019     $ 54,254       April 15, 2019  
May 30, 2019
    0.6250       June 28, 2019       56,318       July 15, 2019  
August 13, 2019
    0.6250       September 30, 2019       62,322       October 15, 2019  
November 8, 2019
    0.6250       December 31, 2019       64,049       January 15, 2020  
   
 
 
           
 
 
 
       
Total Common Dividend
  $ 2.5000             $ 236,943          
The common stock dividends
declared in December 2020 were paid in January 2021, and are included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets.
NOTE 6. COMMITMENTS AND CONTINGENCIES
The Company is periodically subject to claims or litigation in the ordinary course of business, including claims generated from business conducted by tenants on real estate owned by the Company. In these instances, the Company is typically indemnified by the tenant against any losses that might be suffered, and the Company and/or the tenant are insured against such claims.
 
In 2015, Haggen Holdings, LLC and a number of its affiliates, including Haggen Operations Holdings, LLC (“Haggen”), filed petitions for bankruptcy. At the time of the filing, Haggen leased 20 properties from a subsidiary of the
Company
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
under
 
a master lease. The Company and Haggen restructured the master lease in an initial settlement agreement with approved claims of $
21.0
 million. In
2016
, the Company entered into an additional settlement agreement with Haggen and Albertsons, LLC for $
3.4
million and $
3.0
 million, respectively. Prior to
2018
, the Company collected $
5.5
 million of the total claims from both settlement agreements. In
December 2018
, the Company received final settlement proceeds of $
19.7
 million and no other claims related to the Haggen Settlement remain outstanding. $
0.6
 million of the proceeds relieved accruals related to Haggen, and the remaining $
19.1
 million of proceeds is reflected in other income on the accompanying consolidated statement of operations for the year ended December 
31
,
2018
.
As of December 31, 2020, there were no outstanding claims against the Company that are expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.
As of December 31, 2020, the Company had commitments totaling $60.6 million, of which $48.0 million relates to future acquisitions, with the remainder to fund improvements on properties the Company currently owns. Commitments related to acquisitions contain standard cancellation clauses contingent on the results of due diligence.
$60.4 million of these
commitments are expected to be funded during fiscal year 2021.
In addition, the Company is contingently liable for $5.7 million of debt owed by one of its former tenants until the maturity of the debt on March 15, 2022. The Company has accrued the full $5.7 million liability in accounts payable, accrued expenses and other liabilities in the consolidated balance sheet as of both December 31, 2020 and December 31, 2019.
The Company estimates future costs for known environmental remediation requirements when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated. The Company considers various factors when estimating its environmental liabilities, and adjustments are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues. When only a wide range of estimated amounts can be reasonably established and no other amount within the range is better than another, the low end of the range is recorded in the consolidated financial statements. As of December 31, 2020, no accruals have been made.
The Company leases its current corporate office space, which is classified as an operating lease. The corporate office lease contains a variable lease cost related to the lease of parking spaces and a
non-lease
component related to the reimbursement of certain common area maintenance expenses, both of which are recognized as incurred. The Company elected to use the components expedient for all lessee operating leases, which permits the Company to not separate
non-lease
components from lease components if timing and pattern of transfer is the same. As such, total rental expense, including variable rent, for the corporate office space amounted to $1.5 million, $1.6 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is included in general and administrative expense. The Company’s lease of its corporate office space has an initial term that expires on January 31, 2027 and is renewable at the Company’s option for two additional periods of five years each after the initial term.
The Company is also a lessee under long-term,
non-cancellable
ground leases under which it is obligated to pay monthly rent. There were four ground leases as of December 31, 2020 and 2019, respectively. Total rental expense included in property costs, including discontinued operations, amounted to $0.3 million, $0.3 million and $0.9 million for each of the years ended December 31, 2020, 2019 and 2018, respectively. For all ground leases, rental expenses are reimbursed by unrelated third parties, and the corresponding rental revenue is recorded in rental income on the accompanying consolidated statements of operations. All leases are classified as operating leases and have a weighted average remaining lease term of 6.8 years.
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The Company’s minimum aggregate rental commitments under all
non-cancellable
operating leases as of December 31, 2020 are as follows (in thousands):
 
    
Ground Leases   
    
   Office Lease   
    
Total
 
2021
   $ 277        $ 1,024        $ 1,301    
2022
     193          1,040          1,233    
2023
     169          1,055          1,224    
2024
     169          1,070          1,239    
2025
     151          1,086          1,237    
Thereafter
     391          1,193          1,584    
    
 
 
    
 
 
    
 
 
 
Total
     1,350          6,468          7,818    
Less: imputed interest
     (272)         (1,249)         (1,521)   
    
 
 
    
 
 
    
 
 
 
Total operating lease liabilities
   $               1,078        $               5,219        $             6,297    
    
 
 
    
 
 
    
 
 
 
Imputed interest was calculated using a weighted-average discount rate of 4.25%. The discount rate is based on our estimated incremental borrowing rate, calculated as the treasury rate for the same period as the underlying lease term, plus a spread determined using factors including the Company’s credit rating and REIT industry performance. The evaluation of the Company’s
right-of-use
lease asset associated with the corporate office included the unamortized portion of a $1.7 million cash lease incentive paid at inception of the lease. As of December 31, 2020 and 2019, the Company had a
right-of-use
lease asset balance of $4.6 million and $5.4 million, respectively, which are included in deferred costs and other assets, net and an operating lease liability balance of $6.3 million and $7.4 million, respectively, which are included in accounts payable, accrued expenses and other liabilities on the accompanying consolidated balance sheet
s
.
NOTE 7. DERIVATIVE AND HEDGING ACTIVITIES
The Company may use interest rate derivative contracts to manage its exposure to changes in interest rates on its variable rate debt. These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in AOCL and the change is reflected as cash flow hedge changes in fair value in the supplemental disclosures of
non-cash
investing and financing activities in the consolidated statement of cash flows. Amounts will subsequently be reclassified to earnings when the hedged item affects earnings. The Company does not enter into derivative contracts for speculative or trading purposes. The Company does not have netting arrangements related to its derivatives.
The Company is exposed to credit risk in the event of
non-performance
by its derivative counterparties. The Company evaluates counterparty credit risk through monitoring the creditworthiness of counterparties, which includes review of debt ratings and financial performance. To mitigate credit risk, the Company enters into agreements with counterparties it considers credit-worthy, such as large financial institutions with favorable credit ratings.
In December 2018, the Company entered into interest rate swap agreements. In the third quarter of 2019, the Company terminated its interest rate swaps and accelerated the reclassification of a loss of $12.5 million from AOCL to termination of interest rate swaps on the consolidated statement of operations as a result of a portion of the hedged forecasted transactions becoming probable not to occur. There were no events of default related to the interest rate swaps prior to their termination. Given that a portion of the hedged transactions remained probable to occur, $12.3 million of the loss was deferred in other comprehensive loss and will be amortized over the remaining initial term of the interest rate swaps, which ends March 31, 2024. As of December 31, 2020, the unamortized portion of loss in AOCL related to terminated interest rate swaps was $8.7 million.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The following table provides information about the amounts recorded in AOCL, as well as the loss recorded in operations, when reclassified out of AOCL or recognized in earnings immediately (in thousands):
 
    
Year Ended December 31,
    
          2020          
  
          2019          
    
          2018          
 
Gross amount of loss recognized in AOCL on derivatives
   $ —        $ (18,593)      $ (7,159)  
Amount of loss reclassified from AOCL to termination of interest rate swaps
    
 
 
       12,461        —   
Amount of loss reclassified from AOCL to interest
(1)
              2,807                     1,830        —   
    
 
 
 
  
 
 
    
 
 
 
Net reclassification of amounts from (to) AOCL
   $ 2,807        $ (4,302)      $          (7,159)  
    
 
 
 
  
 
 
    
 
 
 
 
(1)
 
Interest expense was $104.2 million, $101.1 million and $144.1 million for the years ended 2020, 2019, and 2018, respectively.
During the next 12 months, we estimate that approximately $2.8 million will be reclassified as an increase to interest expense related to terminated hedges of existing floating-rate debt.
NOTE 8. FAIR VALUE MEASUREMENTS
Fair Value Measurements
The fair value measurement framework specifies a hierarchy of valuation inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable:
 
   
Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities.
 
   
Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data.
 
   
Level 3 – Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions.
 
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Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Nonrecurring Fair Value Measurements
Fair value measurement of an asset on a nonrecurring basis occurs when events or changes in circumstances related to an asset indicate that the carrying amount of the asset is no longer recoverable. Real estate assets and their related intangible assets are evaluated for impairment based on certain indicators including, but not limited to: the asset being held for sale, vacant
,
tenant bankruptcy or delinquency, and leases expiring in
60
days or less. The fair values of real estate and intangible assets were determined using the following information, depending on availability, in order of preference: signed purchase and sale agreements (“PSA”) or letters of intent (“LOI”); broker opinion of value (“BOV”); recently quoted bid or ask prices, or market prices for comparable properties; estimates of discounted cash flows, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, expenses based upon market conditions and capitalization rates; and expectations for the use of the real estate. The following table sets forth the Company’s assets that were accounted for at fair value on a nonrecurring basis as of their respective measurement dates (in thousands):
 
           
Fair Value Hierarchy Level
 
Description
  
    Fair Value    
    
    Level 1    
    
    Level 2    
    
    Level 3    
 
Assets held at December 31, 2020
                                   
Impaired at March 31, 2020
   $ 36,491       $             —       $             —       $         36,491   
Impaired at June 30, 2020
   $ 8,055       $ —       $ —       $ 8,055   
Impaired at September 30, 2020
   $ 10,027       $ —       $ —       $ 10,027   
Impaired at December 31, 2020
   $         14,259       $ —       $ —       $ 14,259   
Assets held at December 31, 2019
                                   
Impaired at June 30, 2019
   $ 1,893       $ —       $ —       $ 1,893   
Impaired at September 30, 2019
   $ 1,093       $ —       $ —       $ 1,093   
Impaired at December 31, 2019
   $ 11,594       $ —       $ —       $ 11,594   
 
As of
 
December 31, 2020, the Company held
23
properties that were impaired during 2020. As of December 31, 2019, the Company held 
16
properties that were impaired during 2019. For
one
of the properties held at December 31, 2020, the Company estimated fair value using a capitalization rate of
10.06
% based on comparative capitalization rates from market competitors. For
one
of the properties held at December 31, 2019, the Company estimated fair value using a capitalization rate of
9.62
% based on comparative capitalization rates from market comparables. For the remaining properties, the Company estimated property fair value using price per square foot from unobservable inputs and, for the properties valued using comparable properties during 2020, the price per square foot includes a discount of
0
-
10
%
to account for the market impact of
COVID-19.
The unobservable inputs for the remaining properties are as follows:
 
Unobservable Input
 
 Asset Type 
   
 Property    
Count    
   
  Price Per Square Foot  
Range
   
    Weighted Average
Price
 
Per
Square Foot
   
Square

    Footage    
 
December 31, 2020
                                       
PSA, LOI or BOV
    Retail       11      
$16.67 - $338.98
      $43.32       577,945    
Comparable Properties
    Retail       10       $4.35 - $282.08       $57.62       431,563    
Comparable Properties
    Office       1      
$79.80 - $103.79
      $89.25       28,804    
           
December 31, 2019
                                       
PSA, LOI or BOV
    Retail       10      
$
24.78
 - $
323.00
      $50.71       165,773    
PSA, LOI or BOV
    Office       1       $
99.37
      $99.37       4,310    
Comparable Properties
    Retail       4      
$
34.45
 - $
740.74
      $104.84       35,885    
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Estimated Fair Value of Financial
Instruments
Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash and escrow deposits, and accounts receivable and payable. Generally, these assets and liabilities are short-term in duration and are recorded at cost, which approximates fair value, on the accompanying consolidated balance sheets.
In addition, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair values. The fair values of financial instruments are estimates based upon market conditions and perceived risks at measurement date. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities. The estimated fair values of these financial instruments have been derived either based on (i) market quotes for identical or similar instruments in markets that are not active or (ii) discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 2 of the fair value hierarchy. The following table discloses fair value information for these financial instruments (in thousands):
 
    
December 31, 2020
    
December 31, 2019
 
    
    Carrying    

Value
    
  Estimated  

Fair Value
    
    Carrying    

Value
    
  Estimated  

Fair Value
 
Loans receivable, net
   $ —        $ —        $ 34,465        $ 35,279    
2019 Credit Facility
     —          —          116,500          119,802    
2020 Term Loans, net 
(1)
     177,309          177,884          —          —    
Senior Unsecured Notes
, net
 
(1)
     1,927,348          2,122,409          1,484,066          1,543,919    
Mortgages and notes payable, net 
(1)
     212,582          226,240          216,049          235,253    
Convertible Notes, net 
(1)
     189,102          194,124          336,402          356,602    
 
(1)
 
The carrying value of the debt instruments are net of unamortized deferred financing costs and certain debt discounts/premiums.
NOTE 9. INCENTIVE AWARD PLAN AND EMPLOYEE BENEFIT PLAN
Amended Incentive Award Plan
Under the Amended Incentive Award Plan, the Company may grant equity incentive awards to eligible employees, directors and other service providers. Awards under the Amended Incentive Award Plan may be in the form of stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, performance awards, stock payment awards, market-based awards, Operating Partnership units and other incentive awards. If an award under the Amended Incentive Award Plan is forfeited, expires or is settled for cash, any shares subject to such award may, to the extent of such forfeiture, expiration or cash settlement, be used again for new grants under the Amended Incentive Award Plan. As of December 31, 2020, 2.3 million shares remained available for award under the Amended Incentive Award Plan.
Shares of common stock have been granted pursuant to the Amended Incentive Award Plan and, during the periods presented, portions of these awards vested. The vesting of these shares resulted in federal and state income tax liabilities for the recipients. As permitted by the terms of the Amended Incentive Award Plan and the award grants, certain executive officers and employees elected to surrender
117.5 thousand, 58 thousand and 58 thousand shares of
common stock during the years ended December 31, 2020, 2019 and 2018, respectively, valued
at $4.4 million, $2.5 million and $2.4 million, respectively, solely to pay the associated statutory tax withholdings, which do not exceed the maximum statutory rate. Common shares repurchased are considered retired under Maryland law, and the cost of the stock repurchased is recorded as a reduction to common stock and accumulated deficit on the consolidated
balance sheets. The Company has made an accounting policy election to recognize stock-based compensation forfeitures as they occur.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
 
Restricted Shares of Common Stock
Restricted share awards have been granted to certain employees, including executive officers, and members of the Board of Directors. The requisite service period for the awards is generally three years for employees and one year for members of the Board of Directors. The following table summarizes restricted share activity under the Amended Incentive Award Plan:
 
    
2020
   
2019
    
2018
 
    
Number of

Shares
    
Weighted

Average Price
 (1)

(per share)
   
Number of

Shares
    
Weighted

Average Price
 (1)

(per share)
    
Number of

Shares
    
Weighted

Average Price
 (1)

(per share)
 
Outstanding
non-vested
shares, beginning of year
     321,627       $               40.66        346,181       $ 45.48         286,917       $ 53.00   
Shares granted
     148,045         46.42        172,818         38.41         207,253         39.43   
Shares vested
     (182,653)        42.04        (193,373)        47.33         (137,292)        52.11   
Shares forfeited
     (7,107)        45.77        (3,999)        38.40         (10,697)        45.02   
    
 
 
    
 
 
   
 
 
    
 
 
    
 
 
    
 
 
 
Outstanding
non-vested
shares, end of year
     279,912       $ 42.67        321,627       $               40.66         346,181       $               45.48   
    
 
 
    
 
 
   
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Based on grant date fair values.
The Company recorded $6.9 million in deferred stock-based compensation associated with restricted shares granted during the year ended December 31, 2020. The fair value of the restricted stock grants was determined based on the Company’s closing stock price on the date of grant. During the year ended December 31, 2020, restricted shares with an aggregate fair value of $7.8 million vested. The fair value of the vesting was determined based on the Company’s closing stock price on the date of vest. Outstanding
non-vested
awards as of December 31, 2020 have a remaining weighted average recognition period of 0.7 years.
In connection with the
Spin-Off
on May 31, 2018, holders of unvested restricted shares of Spirit common stock received unrestricted shares of SMTA common stock on a pro rata basis of one share of SMTA common stock for every ten shares of Spirit common stock. The distribution of unrestricted SMTA shares is considered an award modification that did not result in incremental fair value and, therefore, incremental compensation expense was not recognized. However, since the vesting period of the unrestricted SMTA shares was accelerated, $1.4 million of unrecognized stock-based compensation expense was accelerated and is reflected within general and administrative expenses for the year ended December 31, 2018.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Market-Based Awards
M
arket-based awards have been granted to executive officers upon approval from the Board of Directors or committee thereof. These awards are granted at a target number of units and represent shares that are potentially issuable in the future. The market-based share awards vest based on the Company’s stock
price, dividend
performance,
 and
TSR at the end of their respective performance periods relative to a group of industry peers. The performance periods generally begin on January 1st of the year of grant and end after three years on December 31st. Potential
 shares of the Corporation’s common stock that each participant is eligible to receive is based on the initial target number of shares granted multiplied by a percentage range between 0% and 300
%. The following table summarizes market-based award activity under the Amended Incentive Award Plan:
 
 
  
2020
 
 
 
  
2019
 
 
 
  
2018
 
  
Number of

Target Shares 
 
Weighted

Average Fair

Value

(per share)
 
 
 
 
  
Number of

Target Shares 
 
Weighted

Average Fair

Value

(per share)
 
 
 
 
  
Number of

Target Shares 
 
Weighted

Average Fair

Value

(per share)
 
Outstanding
non-vested
awards, beginning of year
  
 
319,731
 
 
$
49.49
 
 
     
  
 
266,801
 
 
$
51.19
 
 
     
  
 
168,694
 
 
$
62.25
 
Grants at target
  
 
87,746
 
 
 
67.30
 
 
     
  
 
96,543
 
 
 
50.95
 
 
     
  
 
100,899
 
 
 
51.98
 
Earned above performance target
  
 
83,259
 
 
 
54.57
 
 
     
  
 
 
 
 
 
 
     
  
 
 
 
 
 
Vested
 (1)
  
 
(268,694
 
 
54.57
 
 
     
  
 
(30,597
 
 
69.54
 
 
     
  
 
(27,267
 
 
70.24
 
Forfeited
  
 
 
 
 
 
 
     
  
 
(8,662
 
 
72.24
 
 
     
  
 
(2,168
 
 
80.32
 
Incremental Shares
 (2)
  
 
(20,574
 
 
N/A
 
 
     
  
 
(4,354
 
 
N/A
 
 
     
  
 
26,643
 
 
 
N/A
 
 
  
 
 
 
 
 
 
 
 
     
  
 
 
 
 
 
 
 
 
     
  
 
 
 
 
 
 
 
Outstanding
non-vested
awards, end of year
  
 
        201,468
 
 
$
        58.12
 
 
     
  
 
        319,731
 
 
$
        49.49
 
 
     
  
 
        266,801
 
 
$
        51.19
 
 
  
 
 
 
 
 
 
 
 
     
  
 
 
 
 
 
 
 
 
     
  
 
 
 
 
 
 
 
 
(1)
 
The number of shares that vested in 2018 includes 27,267 shares released at target in connection with qualifying terminations. Dividend rights of $0.1 million associated with these terminations were paid in cash during 2018.
 
(2)
 
In 2018, in connection with the
Spin-Off
and in accordance with the rights granted per the Amended Incentive Award Plan, the Board of Directors made an equitable adjustment for
all market-based awards
outstanding, resulting in incremental shares. During the years ended December 31, 2020 and 2019, 20.6 thousand and 3.4 thousand, respectively, of these incremental shares were earned. 1 thousand of the incremental shares expired unearned during the year ended December 31, 2019.
Because the fair value of the outstanding market-based awards the day prior to and the day after the Spin-Off did not materially change, there was no change to unrecognized compensation expense and no incremental compensation expense related to the incremental shares. 
Grant
date fair value of the market-based share awards was calculated using the Monte Carlo simulation model, which incorporated stock price volatility of the Company and each of the Company’s peers and other variables over the time horizons matching the
performance periods. For market-based awards granted in 2020, significant
inputs for the calculation were expected volatility of the Company
of
 
25.2% and expected volatility of the Company’s peers, ranging from 18.1% to 27.3%, with an average volatility of 21.7%
and a risk-free interest rate of 1.07%.
The projected shares to be awarded are not considered issued under the Amended Incentive Award Plan until the performance period has ended and the actual number of shares to be released is determined. The market-based shares and dividend rights are subject to forfeiture in the event of a
non-qualifying
termination of a participant prior to the performance period end date. During the year ended December 31, 2020, market-based awards with an aggregate fair value of $9.6 million vested. The fair value of the vesting was determined based on the Company’s closing stock price on the date of vest. Outstanding
non-vested
awards as of December 31, 2020 have a remaining weighted average recognition period of 1.7 years and would have resulted in 0.3 million shares released based on the Corporation’s TSR relative to the specified peer groups through that date.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
In addition, final shares issued under each market-based share award entitle its holder to a cash payment equal to the aggregate dividends declared with record dates during the performance period, beginning on the grant date and ending the day before the awards are released.
 
Approximately $
2.3
 million and $
2.7
 million in dividend rights have been accrued as of December 
31
,
2020
and
2019
, respectively.
Stock-based Compensation Expense
For the years ended December 31, 2020, 2019 and 2018, the Company recognized $12.6 million, $14.3 million and $15.1 million, respectively, in stock-based compensation expense, which is included in general and administrative expenses in the accompanying consolidated statements of
operations. Stock-based compensation is recognized on a straight-line basis over the minimum required service period of each applicable award. As of
December 31, 2020, the remaining unamortized stock-based compensation expense totaled $12.3 million, comprised of $6.4 million related to restricted stock awards and $5.9 
million related to market-based awards. As of December 31, 2019, the remaining unamortized stock-based compensation expense totaled $12.6 million, including $6.6 million related to restricted stock awards and $6.0 million related to market-based awards.
401(k) Plan
The Company has a 401(k) Plan, which is available to full-time employees on the first month following their date of hire with the Company. Currently, the Company provides a matching contribution equal to 100% of elective deferrals up to 4% of compensation, which vests immediately.
NOTE 10. INCOME PER SHARE AND PARTNERSHIP UNIT
Income per share and unit has been computed using the
two-class
method, which is computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In applying the
two-class
method, undistributed earnings are allocated to both shares of common stock and participating securities based on the weighted average shares outstanding during the period. Classification of the Company’s unvested restricted stock, which contain rights to receive nonforfeitable dividends, are deemed participating securities under the
two-class
method. Under the
two-class
method, earnings attributable to unvested restricted shares are deducted from income from continuing operations in the computation of net income attributable to common
stockholders.
 
1
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The table below is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share and unit computed using the
two-class
method
(
dollars in thousands
):
 
   
Years Ended December 31,
   
2020
 
2019
 
2018
Basic and diluted income:
                        
Income from continuing operations
   $ 26,708      $ 175,266      $ 148,491   
Less: dividends paid to preferred stockholders
     (10,350     (10,350     (10,352
Less: dividends attributable to unvested restricted stock
     (728     (915     (1,149
    
 
 
 
 
 
 
 
 
 
 
 
Income used in basic and diluted income per common share from continuing operations
     15,630       164,001       136,990  
Loss used in basic and diluted income per share from discontinued operations
                 (16,439
    
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders used in basic and diluted income per share
   $ 15,630     $ 164,001     $ 120,551  
    
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding
     104,656,242       91,005,932       86,682,015  
Less: unvested weighted average shares of restricted stock
     (298,582     (384,124     (360,747
    
 
 
 
 
 
 
 
 
 
 
 
Basic weighted average shares of common stock outstanding
     104,357,660       90,621,808       86,321,268  
    
 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to common stockholders - basic
                        
Continuing operations
   $ 0.15     $ 1.81     $ 1.59  
Discontinued operations
                 (0.19
    
 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to common stockholders - basic
   $ 0.15     $ 1.81     $ 1.40  
    
 
 
 
 
 
 
 
 
 
 
 
Dilutive shares related to unvested market-based awards
     175,952       247,504       155,181  
    
 
 
 
 
 
 
 
 
 
 
 
Dilutive shares related to unsettled forward equity contracts
 
 
1,772
 
 
 
 
 
 
 
Diluted weighted average shares of common stock outstanding
(1)
     104,535,384       90,869,312       86,476,449  
    
 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to common stockholders - diluted
                        
Continuing operations
   $ 0.15     $ 1.81     $ 1.58  
Discontinued operations
                 (0.19
    
 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to common stockholders - diluted
   $ 0.15     $ 1.81     $ 1.39  
    
 
 
 
 
 
 
 
 
 
 
 
Potentially dilutive shares related to unvested restricted stock awards
     62,448       166,625       89,230  
 
(1)
 
Assumes the most dilutive issuance of potentially issuable shares between the
two-class
and treasury stock method unless the result would be anti-dilutive.
 
The Corporation intends to satisfy its exchange obligation for the principal amount of the 2021 Convertible Notes to the note holders entirely in cash; therefore, the
“if-converted”
method does not apply and the treasury stock method is being used. For the year ended December 31, 2020, the Corporation’s average stock price was below the conversion price, resulting in zero potentially dilutive shares related to the conversion spread of the 2021 
Convertible Notes.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
 
NOTE 11. RELATED PARTY TRANSACTIONS
Cost Sharing Arrangements
In conjunction with the
Spin-Off,
the Company and SMTA entered into certain agreements, including the Separation and Distribution Agreement, Tax Matters Agreement, Registration Rights Agreement and Insurance Sharing Agreement. These agreements provided a framework for the relationship between the Company and SMTA after the
Spin-Off,
by which Spirit could incur certain expenses on behalf of SMTA that had to be reimbursed in a timely manner. These agreements, except for the Tax Matters Agreement, were terminated in conjunction with the termination of the Asset Management Agreement. The Tax Matters Agreement was terminated in conjunction with the termination of the Interim Management Agreement.
Asset Management Agreement and Interim Management Agreement
In conjunction with the
Spin-Off,
the Company entered into the Asset Management Agreement pursuant to which the Operating Partnership provided various management services to SMTA. On June 2, 2019, concurrently with SMTA’s entry into an agreement to sell Master Trust 2014, the Company entered into a termination agreement of the Asset Management Agreement, which became effective on September 20, 2019, pursuant to which SMTA paid the Company a termination fee of $48.2 million. On June 2, 2019, the Company and SMTA also entered into an Interim Management Agreement, which became effective September 20, 2019 and was subsequently terminated effective September 4, 2020. Asset management fees of $0.7 million, $14.7 million, $11.7 million were earned during the years ended December 31, 2020, 2019, and 2018, respectively, and are included in related party fee income in the consolidated statements of operations. Also, under the terms of the Asset Management Agreement, the Company recognized related party fee income of $0.9 million, which was fully offset by general and administrative expense, for other compensation awarded by SMTA to an employee of Spirit for the year ended December 31, 2019.
Property Management and Servicing Agreement
Prior to September 20, 2019, the Operating Partnership provided property management services and special services for Master Trust 2014. Property management fees of $4.2 million and special servicing fees of $1.2 million were earned for the year ended December 31, 2019. Property management fees of $3.7 million and special services fees of $0.5 million were earned for the year ended December 31, 2018. These fees are included in related party fee income in the consolidated statements of operations. In conjunction with SMTA’s sale of Master Trust 2014 on September 20, 2019, the notes were retired and the Property Management and Servicing Agreement was terminated.
Related Party Loans Payable
Prior to September 20, 2019, wholly-owned subsidiaries of the Company were the borrower on four mortgage loans payable to SMTA and secured by six single-tenant commercial properties owned by the Company. The notes incurred interest expense of $0.2 million for both the years ended December 31, 2019 and 2018, which is included in interest expense in the consolidated statements of operations. In conjunction with SMTA’s sale of Master Trust 2014 on September 20, 2019, the Company repaid the related party loans in full.
Related Party Notes Receivable
The Operating Partnership, as sponsor of the issuance, retained a 5.0% economic interest in the Master Trust 2014 Series
2017-1
notes as required by the risk retention rules issued under 17 CFR Part 246. The notes generated interest income of $1.1 million and $0.9 million for the years ended December 31, 2019 and 2018, respectively, which is included in interest income on loans receivable in the consolidated statements of operations. In conjunction with SMTA’s sale of Master Trust 2014 on September 20, 2019, the Master Trust 2014 notes were redeemed, resulting in the Company receiving the full outstanding principal balance of $33.5 million, plus an early repayment premium of $0.9 
million.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
Investments in SMTA
In conjunction with the
Spin-Off,
SMTA issued to the Operating Partnership and one of its affiliates, both wholly-owned subsidiaries of Spirit, a total of 6.0 million shares of Series A preferred stock with an aggregate liquidation preference of $150.0 million (the “SMTA Preferred Stock”). The SMTA Preferred Stock paid cash dividends at the rate of 10.0% per annum on the liquidation preference of $25.00 per share. Spirit recognized $10.8 million and $8.8 million in dividends during the years ended December 31, 2019 and 2018, respectively, that are reflected as preferred dividend income from SMTA in the consolidated statements of operations. On September 20, 2019, in conjunction with SMTA’s sale of Master Trust 2014, the SMTA Preferred Stock was repurchased by SMTA.
NOTE 12. DISCONTINUED OPERATIONS
On May 31, 2018, the Company completed the
Spin-Off
of SMTA by means of a pro rata share distribution. The Company determined that the
Spin-Off
represented a strategic shift that had a major effect on the Company’s results and, therefore, SMTA’s operations qualified as discontinued operations. Accordingly, the operations of SMTA prior to the
Spin-Off
have been classified as a loss from discontinued operations on the consolidated statements of operations for the year ended December 31, 2018. The consolidated statements of cash flows and all other notes herein include the results of both continuing operations and discontinued operations, as applicable.
Goodwill was allocated to SMTA based on the fair value of SMTA relative to the total fair value of the Company, resulting in a reduction in goodwill of the Company of $28.7 million as a result of the
Spin-Off.
This reduction in the Company’s goodwill is reflected in the SMTA dividend distribution in the accompanying consolidated statement of stockholders’ equity and consolidated statement of partners’ capital.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
The table below provides information about income and expenses related to the Company’s discontinued operations reported in its consolidated statements of operations:
 
(in thousands)
  
Year Ended
  December 31, 2018  
Revenues:
      
 
Rental income
   $             100,672      
Interest income on loans receivable
     1,495
 
Other income
     776
 
  
 
 
 
Total revenues
     102,943
 
Expenses:
      
 
General and administrative
     264
 
Transaction costs
     21,391
 
Property costs (including reimbursable)
     3,711
 
Deal pursuit costs
     339
 
Interest
     46,521
 
Depreciation and amortization
     35,461
 
Impairments
     10,943
 
  
 
 
 
Total expenses
     118,630
 
  
 
 
 
Other loss:
      
 
Loss on debt extinguishment
     (363 )
Loss on disposition of assets
     (274 )
  
 
 
 
Total other loss
     (637 )
  
 
 
 
Loss from discontinued operations before income tax expense
     (16,324 )
Income tax expense
     (115 )
  
 
 
 
Loss from discontinued operations
   $ (16,439 )
  
 
 
 
There were no discontinued operations included in the consolidated statement of operations for the years ended December 31, 2020 and 2019 or for the balance sheets presented herein as of December 31, 2020 and 2019.
The table below provides information about operating and investing cash flows related to the Company’s discontinued operations reported in its consolidated statements of cash flows:
 
    
        Year Ended December 31,        
(in thousands)
  
2018
Net cash provided by operating activities
   $               35,163   
Net cash used in investing activities
     (31,544
Continuing Involvement
From the
Spin-Off
through September 4, 2020, the Company had continuing involvement with SMTA through related party agreements. See Note 11 for further detail. The Company had cash inflows from SMTA of $1.1 million and cash outflows to SMTA of $1.4 million for the year ended December 31, 2020. The Company had cash inflows from SMTA of $273.0 million and cash outflows to SMTA of $49.9 million for the year ended December 31, 2019. The Company had cash inflows from SMTA of $24.1 million and cash outflows to SMTA of $49.8 million for the
year
ended December 31, 2018.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
NOTE 13. INCOME TAXES
The Company’s total income tax expense was as follows (in thousands):
 
    
Years Ended December 31,
    
2020
 
2019
 
2018
State income tax
   $
128
     $ 1,327      $ 785   
Federal income tax
    
145
      10,174       122  
    
 
 
 
 
 
 
 
 
 
 
 
Total income tax expense
   $                  273     $             11,501     $                  907  
    
 
 
 
 
 
 
 
 
 
 
 
The Operating Partnership is a partnership for federal income tax purposes. Partnerships are pass-through entities and are not subject to U.S. federal income taxes, and therefore, no provision has been made for federal income taxes in the accompanying consolidated financial statements. Although most states and cities where the Operating Partnership operates follow the U.S. federal income tax treatment, there are certain jurisdictions such as Texas, Tennessee and Ohio that impose income or franchise taxes on a partnership. The Company’s deferred income tax expense and its ending balance in deferred tax assets and liabilities, which are recorded within accounts payable, accrued expenses and other liabilities in the accompanying consolidated balance sheets, were immaterial at December 31, 2020, 2019 and 2018.
The Operating Partnership transferred its rights and obligations under the Asset Management Agreement to SRAM, a wholly-owned taxable REIT subsidiary of Spirit, on April 1, 2019. This agreement was subsequently terminated and simultaneously replaced by the Interim Management Agreement between SRAM and SMTA, effective from September 20, 2019 through September 4, 2020. Accordingly, all asset management fees earned from April 1, 2019 through September 4, 2020, including the termination fee income earned in September 2019, were subject to income tax. 
The Operating Partnership allocated personnel and other general and administrative costs to SRAM for management services provided to SMTA, including services provided in connection with SMTA’s sale of Master Trust 2014 on September 20, 2019. The federal income tax related to SRAM for the year ended December 31, 2019 was $10.2 million and the state income tax for the year ended December 31, 2019 was $0.7 million. Income tax expense for SRAM attributable to income before income taxes differs from the amounts computed by applying the U.S. statutory federal income tax rate of 21% to income before income taxes. The difference between the statutory rate and reported amount for SRAM is caused by
non-deductible
executive compensation expenses totaling $0.6 million and the impact of state income taxes, net of federal income tax benefit, totaling $0.6 million.
To the extent that the Company acquires property that has been owned by a C corporation in a transaction in which the tax basis of the property carries over, and the Company recognizes a gain on the disposition of such property during the subsequent recognition period, it will be required to pay tax at the regular corporate tax rate to the extent of such
built-in
gain. No properties subject to state
built-in
gain tax were sold during 2020 or 2019.
The Corporation has federal net operating loss carry-forwards for income tax purposes totaling $66.1 million for each of the years ended December 31, 2020, 2019 and 2018. These losses, which begin to expire in 2027 through 2034, are available to reduce future taxable income or distribution requirements, subject to certain ownership change limitations. The Corporation intends to make annual distributions at least equal to its taxable income and thus does not expect to utilize its net operating loss carryforwards in the foreseeable future.
The Company files federal, state and local income tax returns. All federal tax returns for years prior to 2017 are no longer subject to examination. Additionally, state tax returns for years prior to 2016 are generally no longer subject to examination. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest
 
expense and to recognize any penalties as operating expenses. There was no accrual for interest or penalties at December 31, 2020, 2019 and 2018. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each
matter.
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
For the years ended December 31, 2020, 2019 and 2018, common stock dividends paid were characterized for tax as follows (per share):
 
    
Years Ended December 31,
 
    
2020
  
2019
  
2018
 (1)
 
Ordinary income
   $                      
1.80
  
   $                      1.94        $                      2.63    
Return of capital
  
0.70
  
   0.05        0.22    
Capital gain
   —      0.51        5.16    
    
 
  
 
  
 
 
 
Total
   $                      2.50      $                      2.50      $                      8.01    
    
 
  
 
  
 
 
 
 
(1)
 
Includes stock distribution related to the
Spin-Off
of SMTA of $4.68 per share.
NOTE 14. CONSOLIDATED QUARTERLY FINANCIAL DATA
The following table sets forth certain unaudited consolidated financial information for each of the four quarters included in the years ended December 31, 2020 and 2019 (in thousands, except share and per share data):
 
2020
  
First
    
Second
    
Third
    
Fourth
        
(Unaudited)   
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Year
 
Total revenues
   $   122,720        $   118,524        $   113,741        $   128,632        $   483,617    
Depreciation and amortization
     (52,236)         (53,160)         (52,170)         (55,054)         (212,620)   
Interest
     (25,359)         (26,095)         (26,404)         (26,307)         (104,165)   
Other expenses
     (61,360)         (40,340)         (24,880)         (30,473)         (157,053)   
(
Loss
)
gain on debt extinguishment
     —          —          (7,252)         25          (7,227)   
Gain on disposition of assets
     388          658          10,763          12,347          24,156    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net (loss) income
     (15,847)         (413)         13,798          29,170          26,708    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Dividends paid to preferred stockholders      (2,588)         (2,588)         (2,587)         (2,587)         (10,350)   
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net (loss) income attributable to common stockholders and partners    $ (18,435)       $ (3,001)       $ 11,211        $ 26,583        $ 16,358    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net (loss) income per share attributable to common stockholders and partners - basic    $ (0.18)       $ (0.03)       $ 0.11        $ 0.24        $ 0.15    
Net (loss) income per share attributable to common stockholders and partners - diluted    $ (0.18)       $ (0.03)       $ 0.11        $ 0.24        $ 0.15    
Dividends declared per common share and partnership unit    $ 0.6250        $ 0.6250        $ 0.6250        $ 0.6250        $ 2.500    
 
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SPIRIT REALTY CAPITAL, INC. and SPIRIT REALTY, L.P.
Notes to Consolidated Financial Statements - (continued)
December 31, 2020
 
2019
  
First
    
Second
    
Third
    
Fourth
        
(Unaudited)   
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Year
 
Total revenues
   $   112,593        $   115,745        $   166,947        $   121,142        $   516,427    
Depreciation and amortization
     (41,349)         (41,342)         (43,907)         (48,867)         (175,465)   
Interest
     (26,611)         (25,176)         (24,675)         (24,598)         (101,060)   
Other expenses
     (22,318)         (22,340)         (47,047)         (28,253)         (119,958)   
Gain (loss) on debt extinguishment
     8,783          (14,676)         (5,580)         (2,857)         (14,330)   
Gain (loss) on disposition of assets
     8,730          29,776          32,254          (11,910)         58,850    
Preferred dividend income from SMTA
     3,750          3,750          3,302          —          10,802    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net income
     43,578          45,737          81,294          4,657          175,266    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Dividends paid to preferred stockholders
     (2,588)         (2,588)         (2,587)         (2,587)         (10,350)   
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net income attributable to common stockholders and partners    $ 40,990        $ 43,149        $ 78,707        $ 2,070        $ 164,916    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net income per share attributable to common stockholders and partners - basic    $ 0.48        $ 0.49        $ 0.87        $ 0.02        $ 1.81    
Net income per share attributable to common stockholders and partners - diluted    $ 0.48        $ 0.49        $ 0.87        $ 0.02        $ 1.81    
Dividends declared per common share and partnership unit    $ 0.6250        $ 0.6250        $ 0.6250        $ 0.6250        $ 2.500    
 
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PART III
Item 9.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
SPIRIT REALTY CAPITAL, INC.
Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of Spirit Realty Capital, Inc.’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness as of December 31, 2020 of the design and operation of Spirit Realty Capital, Inc.’s disclosure controls and procedures as defined in Rule
13a-15(e)
and
15d-15(e)
under the Exchange Act. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of December 31, 2020, that the design and operation of these disclosure controls and procedures were effective at the reasonable assurance level.
Management’s Report on Internal Control over Financial Reporting
Management, including the Chief Executive Officer and Chief Financial Officer, are responsible for establishing and maintaining adequate internal control over financial reporting for Spirit Realty Capital, Inc. Management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - 2013 Integrated Framework to assess the effectiveness of Spirit Realty Capital, Inc.’s internal control over financial reporting. Based upon the assessments, the Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2020, internal control over financial reporting was effective at the reasonable assurance level.
Ernst & Young LLP, Spirit Realty Capital, Inc.’s independent registered public accounting firm, audited Spirit Realty Capital, Inc.’s financial statements included in this Annual Report on Form
10-K
and has issued an attestation report on Spirit Realty Capital, Inc.’s effectiveness of internal control over financial reporting, which appears in this Annual Report on Form
10-K.
Changes in Internal Control over Financial Reporting
There were no changes to Spirit Realty Capital, Inc.’s internal control over financial reporting (as defined in Rule
13a-15(e)
and
15d-15(e)
under the Exchange Act) that occurred during the quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, Spirit Realty Capital, Inc.’s internal control over financial reporting.
SPIRIT REALTY, L.P.
Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of Spirit Realty, L.P.’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness as of December 31, 2020 of the design and operation of Spirit Realty, L.P.’s disclosure controls and procedures as defined in Rule
13a-15(e)
and
15d-15(e)
under the Exchange Act. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of December 31, 2020, that the design and operation of these disclosure controls and procedures were effective at the reasonable assurance level.
Management’s Report on Internal Control over Financial Reporting
Management, including the Chief Executive Officer and Chief Financial Officer, are responsible for establishing and maintaining adequate internal control over financial reporting for Spirit Realty, L.P. Management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - 2013
 
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Integrated Framework to assess the effectiveness of Spirit Realty, L.P.’s internal control over financial reporting. Based upon the assessments, the Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2020, internal control over financial reporting was effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There were no changes to Spirit Realty, L.P.’s internal control over financial reporting (as defined in Rule
13a-15(e)
and
15d-15(e)
under the Exchange Act) that occurred during the quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, Spirit Realty, L.P.’s internal control over financial reporting.
INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS
Our management, including our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, our management does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
Item 9B. Other Information
None.
Item 10. Directors, Executive Officers and Corporate Governance
The information concerning our directors and executive officers required by Item 10 will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
Item 11. Executive Compensation
The information concerning our executive compensation required by Item 11 will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information concerning our security ownership of certain beneficial owners and management and related stockholder matters (including equity compensation plan information) required by Item 12 will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
 
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Item 13. Certain Relationships and Related Transactions, and Director Independence
The information concerning certain relationships, related transactions and director independence required by Item 13 will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
The information concerning our principal accounting fees and services required by Item 14 will be included in the Proxy Statement to be filed relating to our 2021 Annual Meeting of Stockholders and is incorporated herein by reference.
 
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PART IV
Item 15.    Exhibits, Financial Statement Schedules
(a)(1) and (2)
Financial Statements and Schedules
. The following documents are filed as a part of this report (see Item 8):
Reports of Independent Registered Public Accounting Firm.
Consolidated Balance Sheets as of December 31, 2020 and 2019.
Consolidated Statements of Operations for the Years Ended December 31, 2020, 2019 and 2018.
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2020, 2019 and 2018.
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2020, 2019 and 2018.
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020, 2019 and 2018.
Notes to Consolidated Financial Statements.
Schedule III - Real Estate and Accumulated Depreciation as of December 31, 2020.
Schedule IV - Mortgage Loans on Real Estate as of December 31, 2020.
All other schedules are omitted since the required information is not present in amounts sufficient to require submission of the schedule or because the information required is included in the financial statements and the notes thereto.
 
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(b)
Exhibits
.
 
Exhibit No.
  
Description
2.1    Agreement and Plan of Merger by and among Spirit Realty Capital, Inc., Spirit Realty, L.P., Cole Credit Property Trust II, Inc., and Cole Operating Partnership II, LP, dated January 22, 2013, filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K on January 24, 2013 and incorporated herein by reference.
2.2    First Amendment to Agreement and Plan of Merger by and among Spirit Realty Capital, Inc., Spirit Realty, L.P., Cole Credit Property Trust II, Inc., and Cole Operating Partnership II, LP, dated May 8, 2013, filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K on May 9, 2013 and incorporated herein by reference.
2.3    Articles of Merger by and between Spirit Realty Capital, Inc. and Spirit Realty Capital, Inc. and the Amended and Restated Charter of Spirit Realty Capital, Inc. attached thereto as Exhibit A filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
2.4    Separation and Distribution Agreement by and between Spirit Realty Capital, Inc. and Spirit MTA REIT, dated May 21, 2018, filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K on May 24, 2018 and incorporated herein by reference.
3.1    Articles of Restatement of Spirit Realty Capital, Inc. filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-3 on November 8, 2013 and incorporated herein by reference.
3.2    Articles of Amendment of Spirit Realty Capital, Inc. filed as Exhibit 3.1 to the Company’s Form 8-K on May 13, 2014 and incorporated herein by reference.
3.3    Articles Supplementary of Spirit Realty Capital, Inc. filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K on March 3, 2017 and incorporated herein by reference.
3.4    Fifth Amended and Restated Bylaws of Spirit Realty Capital, Inc. filed as Exhibit 3.1 to the Company’s Form 8-K on August 15, 2017 and incorporated herein by reference.
3.5    Second Amended and Restated Agreement of Limited Partnership of Spirit Realty, L.P. filed as Exhibit 3.1 to the Operating Partnership’s Form 8-K on October 3, 2017 and incorporated herein by reference.
3.6    Articles Supplementary designating Spirit Realty Capital, Inc.’s 6.000% Series A Cumulative Redeemable Preferred Stock filed as Exhibit 3.4 to the Company’s Registration Statement on Form 8-A on October 2, 2017 and incorporated herein by reference.
3.7    Certificate of Limited Partnership of Spirit Realty, L.P. dated September 25, 2012, filed as Exhibit 4.5 to the Company’s Form S-4 on March 20, 2017 and incorporated herein by reference.
3.8    Articles of Amendment of Spirit Realty Capital, Inc. filed as Exhibit 3.1 to the Company’s Form 8-K on April 29, 2019 and incorporated herein by reference.
4.1    Form of Certificate for Common Stock of Spirit Realty Capital, Inc. filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-4/A on March 29, 2013 and incorporated herein by reference.
4.2    Form of Certificate for Spirit Realty Capital, Inc.’s 6.000% Series A Cumulative Redeemable Preferred Stock filed as Exhibit 3.6 to the Company’s Registration Statement on Form 8-A on October 2, 2017 and incorporated herein by reference.
4.3    Indenture between the Spirit Realty Capital, Inc. and Wilmington Trust, National Association, dated May 20, 2014, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K on May 20, 2014 and incorporated herein by reference.
4.4    Second Supplemental Indenture by and between Spirit Realty Capital, Inc. and Wilmington Trust, National Association (including the form of 3.75% Convertible Senior Note due 2021), dated May 20, 2014, filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K on May 20, 2014 and incorporated herein by reference.
4.5    Indenture among Spirit Realty, L.P. and U.S. Bank, National Association, dated as of August 18, 2016, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K on August 19, 2016 and incorporated herein by reference.
 
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Exhibit No.
  
Description
4.6    First Supplemental Indenture among Spirit Realty, L.P., Spirit Realty Capital, Inc. and U.S. Bank, National Association, including the form of the Notes and the guarantee, dated as of August 18, 2016, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K on August 19, 2016 and incorporated herein by reference.
4.7    Second Supplemental Indenture among Spirit Realty, L.P., as issuer, Spirit Realty Capital, Inc., as guarantor and U.S. Bank National Association, as trustee, including the form of the Notes and the guarantee, dated as of June 27, 2019, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K on June 27, 2019 and incorporated herein by reference.
4.8    Third Supplemental Indenture among Spirit Realty, L.P., as issuer, Spirit Realty Capital, Inc., as guarantor and U.S. Bank National Association, as trustee, dated as of September 16, 2019, including the form of the Notes and the guarantee, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K on September 16, 2019 and incorporated herein by reference.
4.9    Fourth Supplemental Indenture among Spirit Realty, L.P., as issuer, Spirit Realty Capital, Inc., as guarantor and U.S. Bank National Association, as trustee, dated as of September 16, 2019, including the form of the Notes and the guarantee, filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K on September 16, 2019 and incorporated herein by reference.
4.10    Fifth Supplemental Indenture, dated as of August 6, 2020, among Spirit Realty, L.P., as issuer, Spirit Realty Capital, Inc., as guarantor and U.S. Bank National Association, as trustee, including the form of the Notes and the Guarantee, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K on August 6, 2020 and incorporated herein by reference.
4.11    Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, filed as Exhibit 4.11 to the Company’s Annual Report on Form 10-K on February 25, 2020 and incorporated herein by reference.
10.1
#
   Amended and Restated Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan filed as Appendix A within the Company’s Definitive Proxy Statement on Schedule 14A on April 11, 2016 and incorporated herein by reference.
10.2
#
   Amendment to the Amended and Restated Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan, dated March 2, 2017, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on March 3, 2017 and incorporated herein by reference.
10.3
#
   Second Amendment to the Amended and Restated Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan, dated March 2, 2017, filed as Exhibit 10.3 to the Company’s Annual Report on Form 10-K on February 25, 2020 and incorporated herein by reference.
10.4
#
   Third Amendment to the Amended and Restated Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan, dated May 20, 2019, filed as Exhibit 10.4 to the Company’s Annual Report on Form 10-K on February 25, 2020 and incorporated herein by reference.
10.5
#
   Form of 2012 Incentive Award Plan Restricted Stock Award Grant Notice and Agreement filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
10.6
#
   Form of Performance Share Award Agreement filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K on August 6, 2013 and incorporated herein by reference.
10.7
#
   Form of Indemnification Agreement of Spirit Realty Capital, Inc. filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
10.8
#
   Second Amended and Restated Employment Agreement among Spirit Realty Capital, Inc. and Jackson Hsieh, dated February 27, 2020, filed as Exhibit 10.1 to the Company’s Form 8-K on March 2, 2020 and incorporated herein by reference.
10.9
#
   Restricted Stock Award Agreement between Spirit Realty Capital, Inc. and Jackson Hsieh filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K on July 25, 2017 and incorporated herein by reference.
 
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Exhibit No.
  
Description
10.10
#
   Performance Share Award Agreement between Spirit Realty Capital, Inc. and Jackson Hsieh filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K on July 25, 2017 and incorporated herein by reference.
10.11
#
   Employment Agreement among Spirit Realty Capital, Inc. and Michael Hughes, dated March 20, 2018, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on March 21, 2018 and incorporated herein by reference.
10.12
#
   Amendment to Employment Agreement, dated February 27, 2020, by and between Spirit Realty Capital, Inc. and Michael Hughes, filed as Exhibit 10.2 to the Company’s Form 8-K on March 2, 2020 and incorporated herein by reference.
10.13
#
   Restricted Stock Award Agreement between Spirit Realty Capital, Inc. and Michael Hughes dated March 29, 2018, filed as Exhibit 10.17 to the Company’s Annual Report on Form 10-K on February 25, 2020 and incorporated herein by reference.
10.14
#
   Performance Share Award Agreement between Spirit Realty Capital, Inc. and Michael Hughes dated March 29, 2018, filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K on February 25, 2020 and incorporated herein by reference.
10.15
#
   Amended and Restated Employment Agreement among Spirit Realty Capital, Inc. and Jay Young, dated April 3, 2018, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on April 6, 2018 and incorporated herein by reference.
10.16
#
   Amendment to Amended and Restated Employment Agreement, dated February 27, 2020, by and between Spirit Realty Capital, Inc. and Jay Young, filed as Exhibit 10.3 to the Company’s Form 8-K on March 2, 2020 and incorporated herein by reference.
10.17
#
   Employment Agreement among Spirit Realty Capital, Inc. and Kenneth Heimlich dated April 3, 2018, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K on April 6, 2018 and incorporated herein by reference.
10.18
#
   Amendment to Employment Agreement, dated February 27, 2020, by and between Spirit Realty Capital, Inc. and Kenneth Heimlich, filed as Exhibit 10.4 to the Company’s Form 10-K on March 2, 2020 and incorporated herein by reference.
10.19    Director Compensation Program of Spirit Realty Capital, Inc. dated August 16, 2018 filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on August 22, 2018 and incorporated herein by reference.
10.20    Revolving Credit and Term Loan Agreement among Spirit Realty L.P., JPMorgan Chase Bank, N.A., as administrative agent and the financial institutions party thereto as lenders from time to time, dated January 14, 2019, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on January 14, 2019 and incorporated herein by reference.
10.21    Guaranty between Spirit Realty Capital, Inc. and JPMorgan Chase Bank, N.A., and acknowledged by Spirit Realty L.P., dated January 14, 2019, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K on January 14, 2019 and incorporated herein by reference.
10.22    Term Loan Agreement among Spirit Realty, L.P., JPMorgan Chase Bank, N.A., as administrative agent and the financial institutions party thereto as lenders from time to time, dated April 2, 2020, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K on April 7, 2020 and incorporated herein by reference.
10.23    Guaranty between Spirit Realty Capital, Inc. and JPMorgan Chase Bank, N.A, and acknowledged by Spirit Realty, L.P., dated April 2, 2020, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K on April 7, 2020 and incorporated herein by reference.
10.24    Amendment No. 1 to Term Loan Agreement among Spirit Realty, L.P., JPMorgan Chase Bank, N.A., as administrative agent and the financial institutions party thereto as lenders from time to time, dated May 5, 2020, filed as Exhibit 10.3 to the Company’s Form 10-Q on July 31, 2020 and incorporated herein by reference.
 
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Exhibit No.
  
Description
10.25    Amendment No. 2 to Term Loan Agreement among Spirit Realty, L.P., JPMorgan Chase Bank, N.A., as administrative agent and the financial institutions party thereto as lenders from time to time, dated May 5, 2020, filed as Exhibit 10.4 to the Company’s Form 10-Q on July 31, 2020 and incorporated herein by reference.
10.26    Amendment No. 3 to Term Loan Agreement among Spirit Realty, L.P., JPMorgan Chase Bank, N.A., as administrative agent and the financial institutions party thereto as lenders from time to time, dated May 5, 2020, filed as Exhibit 10.4 to the Company’s Form 10-Q on July 31, 2020 and incorporated herein by reference.
10.27    Loan Agreement, between German American Capital Corporation and Spirit SPE Loan Portfolio 2013-2, LLC, dated July 17, 2013, filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
10.28    Guaranty of Recourse Obligations of Borrower, by Spirit Realty, L.P. in favor of German American Capital Corporation, dated July 17, 2013, filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
10.29    Loan Agreement, between Barclays Bank PLC and Spirit SPE Loan Portfolio 2013-3, LLC, dated July 17, 2013, filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
10.31    Guaranty of Recourse Obligations of Borrower by Spirit Realty, L.P. in favor of Barclays Bank PLC, dated July 17, 2013, filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K on July 18, 2013 and incorporated herein by reference.
21.1*    List of Subsidiaries of Spirit Realty Capital, Inc. as of December 31, 2020.
23.1*    Consent of Ernst & Young LLP, Spirit Realty Capital, Inc.’s Independent Registered Accounting Firm.
23.2*    Consent of Ernst & Young LLP, Spirit Realty L.P.’s Independent Registered Accounting Firm.
31.1*    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Spirit Realty Capital, Inc.
31.2*    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Spirit Realty Capital, Inc.
31.3*    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Spirit Realty, L.P.
31.4*    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Spirit Realty, L.P.
32.1*    Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Spirit Realty Capital, Inc.
32.2*    Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Spirit Realty, L.P.
101.1*    The following financial information from Spirit Realty Capital, Inc.’s Annual Report on Form
10-K
for the year ended December 31, 2020, formatted in inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements.
104.1*    Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
*    Filed herewith.
#
 
   Management contract or compensatory plan or arrangement.
Item 16. Form 10-K Summary
None.
 
117

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
24 Hour Fitness   Lancaster, CA   (b)     6,982       9,255       (3,817     (5,674     3,165       3,581       6,746       (150   1987   5/7/2015   4 to 25 Years
Aaron’s   Okeechobee, FL   (b)     409       1,298                   409       1,298       1,707       (292   2006   7/17/2013   10 to 47 Years
Aaron’s   Navasota, TX   (b)     322       868                   322       868       1,190       (246   2007   7/17/2013   10 to 44 Years
Aaron’s   Essex, MD   (b)     294       1,973                   294       1,973       2,267       (372   1998   7/17/2013   10 to 45 Years
Aaron’s   Clanton, AL   (b)     350       816                   350       816       1,166       (213   2007   7/17/2013   10 to 46 Years
Aaron’s   Griffin, GA   (b)     459       1,322                   459       1,322       1,781       (307   2007   7/17/2013   10 to 49 Years
Aaron’s   Beeville, TX   (b)     101       1,814                   101       1,814       1,915       (331   2004   7/17/2013   10 to 45 Years
Aaron’s   Mineral Wells, TX   (b)     448       878                   448       878       1,326       (248   2008   7/17/2013   10 to 42 Years
Aaron’s   Largo, FL   (b)     758       1,025                   758       1,025       1,783       (272   1999   7/17/2013   9 to 36 Years
Aaron’s   Mansfield, TX   (b)     859       599                   859       599       1,458       (231   2007   7/17/2013   10 to 34 Years
Aaron’s   Charlotte, NC   (b)     371       598                   371       598       969       (266   1957   7/17/2013   8 to 25 Years
Aaron’s   Alamogordo, NM   (b)     476       560                   476       560       1,036       (240   2006   7/17/2013   8 to 40 Years
Aaron’s   Wichita, KS   (b)     236       741                   236       741       977       (176   1990   7/17/2013   10 to 42 Years
Aaron’s   Grovetown, GA   (b)     425       933                   425       933       1,358       (250   2007   7/17/2013   10 to 45 Years
Aaron’s   Calumet City, IL   (b)     393       949                   393       949       1,342       (295   1977   7/17/2013   9 to 32 Years
Aaron’s   Harrisonville, MO   (b)     316       466                   316       466       782       (218   1996   7/17/2013   8 to 33 Years
Aaron’s   Chiefland, FL   (b)     376       1,206                   376       1,206       1,582       (306   2007   7/17/2013   10 to 47 Years
Aaron’s   Sandersville, GA   (b)     503       751                   503       751       1,254       (230   2006   7/17/2013   10 to 45 Years
Aaron’s   Shreveport, LA   (b)     374       490                   374       490       864       (269   2001   7/17/2013   10 to 31 Years
Aaron’s   Baton Rouge, LA   (b)     328       996                   328       996       1,324       (276   1999   7/17/2013   10 to 40 Years
Aaron’s   Sweetwater, TX   (b)     415       1,097                   415       1,097       1,512       (277   2006   7/17/2013   10 to 47 Years
Aaron’s   Anderson, SC   (b)     351       966                   351       966       1,317       (234   1992   7/17/2013   10 to 41 Years
Aaron’s   Rome, NY   (b)     436       699                   436       699       1,135       (275   1996   7/17/2013   10 to 28 Years
Aaron’s   Hartsville, SC   (b)     536       813                   536       813       1,349       (348   2007   7/17/2013   10 to 37 Years
Aaron’s   Forrest City, AR   (b)     331       860                   331       860       1,191       (206   2002   7/17/2013   10 to 45 Years
Aaron’s   Wilton, NY   (b)     1,348       2,165                   1,348       2,165       3,513       (1,150   2000   7/17/2013   8 to 27 Years
Academy Sports + Outdoors   Lufkin, TX   (a)     1,922       2,735                   1,922       2,735       4,657       (1,046   2003   7/17/2013   9 to 30 Years
Academy Sports + Outdoors   North Richland Hills, TX   (b)     1,950       5,451                   1,950       5,451       7,401       (833   1996   7/17/2013   30 to 30 Years
Academy Sports + Outdoors   Macon, GA   (b)     1,921       4,890                   1,921       4,890       6,811       (1,725   2005   7/17/2013   10 to 30 Years
Academy Sports + Outdoors   Clarksville, TN   (b)     2,134       5,871                   2,134       5,871       8,005           2014   12/16/2020   11 to 36 Years
Academy Sports + Outdoors   Douglasville, GA   (b)     1,527       7,313                   1,527       7,313       8,840           2014   12/16/2020   11 to 36 Years
Academy Sports + Outdoors   Flowood, MS   (b)     1,349       7,085                   1,349       7,085       8,434           2014   12/16/2020   11 to 36 Years
Academy Sports + Outdoors   Lake Charles, LA   (b)     1,748       6,480                   1,748       6,480       8,228           2015   12/29/2020   13 to 32 Years
Accel International   Meridian, CT   (b)     1,766       7,848                   1,766       7,848       9,614       (1,911   1997   12/17/2014   15 to 30 Years
Accel International   Avila, IN   (b)     642       4,958                   642       4,958       5,600       (1,140   1990   12/17/2014   15 to 30 Years
Advance Auto Parts   Holland Charter Township, MI   (b)     493       1,212                   493       1,212       1,705       (267   2005   7/17/2013   7 to 47 Years
 
11
8

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Advance Auto Parts   Holland, MI   (b)     542       1,384                   542       1,384       1,926       (320   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   Zeeland, MI   (b)     490       1,136                   490       1,136       1,626       (271   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   Columbia Heights, MN   (b)     510       1,314                   510       1,314       1,824       (312   2006   7/17/2013   7 to 43 Years
Advance Auto Parts   Duluth, MN   (b)     207       1,462                   207       1,462       1,669       (282   2006   7/17/2013   7 to 48 Years
Advance Auto Parts   Rainsville, AL   (b)     251       1,073                   251       1,073       1,324       (289   2005   7/17/2013   7 to 42 Years
Advance Auto Parts   Grand Bay, AL   (b)     226       1,242                   226       1,242       1,468       (271   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   Hurley, MS   (b)     265       1,052                   265       1,052       1,317       (272   2006   7/17/2013   7 to 45 Years
Advance Auto Parts   Ashland, KY   (b)     613       1,284                   613       1,284       1,897       (326   2006   7/17/2013   8 to 48 Years
Advance Auto Parts   Jackson, OH   (b)     397       1,251                   397       1,251       1,648       (302   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   New Boston, OH   (b)     345       1,538                   345       1,538       1,883       (320   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   Maryland Heights, MO   (b)     522       1,155                   522       1,155       1,677       (287   2005   7/17/2013   7 to 47 Years
Advance Auto Parts   Scottsburg, IN   (b)     238       665                   238       665       903       (180   2006   7/17/2013   8 to 43 Years
Advance Auto Parts   Charlotte, NC   (b)     403       1,146                   403       1,146       1,549       (327   2008   7/17/2013   12 to 43 Years
Advance Auto Parts   Irvington, NJ   (b)     1,605       1,912                   1,605       1,912       3,517       (466   2006   7/17/2013   7 to 47 Years
Advance Auto Parts   Midwest City, OK   (b)     353       815                   353       815       1,168       (233   2007   7/17/2013   9 to 44 Years
Advance Auto Parts   Penns Grove, NJ   (b)     612       1,564                   612       1,564       2,176       (361   2006   7/17/2013   8 to 47 Years
Advance Auto Parts   St. Francis, WI   (b)     532       1,557                   532       1,557       2,089       (395   2006   7/17/2013   8 to 48 Years
Advance Auto Parts   Willingboro, NJ   (b)     784       1,369                   784       1,369       2,153       (388   2007   7/17/2013   9 to 47 Years
Advance Auto Parts   Dunellen, NJ   (b)     1,177       1,973                   1,177       1,973       3,150       (408   2008   7/17/2013   10 to 48 Years
Advance Auto Parts   Natchez, MS   (b)     509       754                   509       754       1,263       (122   1998   7/22/2016   7 to 40 Years
Advance Auto Parts   Burlington, IA   (b)     467       737                   467       737       1,204       (121   1989   7/22/2016   7 to 40 Years
Advance Auto Parts   Denmark, SC   (b)     439       504                   439       504       943       (125   1996   7/22/2016   7 to 30 Years
Advance Auto Parts   Griffin, GA   (b)     441       1,142                   441       1,142       1,583       (172   1998   7/22/2016   7 to 50 Years
Advance Auto Parts   Waynesboro, GA   (b)     330       1,015                   330       1,015       1,345       (149   1995   7/22/2016   7 to 50 Years
Advance Auto Parts   Wiggins, MS   (b)     279       630                   279       630       909       (128   1965   7/22/2016   7 to 30 Years
Advance Auto Parts   Blakeley, GA   (b)     169       887                   169       887       1,056       (121   1995   7/22/2016   7 to 50 Years
Advance Auto Parts   Theodore, AL   (b)     549       755                   549       755       1,304       (142   1996   7/22/2016   7 to 40 Years
Advance Auto Parts   Margate, FL   (b)     480       507                   480       507       987       (99   1991   7/22/2016   7 to 40 Years
Advance Auto Parts   Atmore, AL   (b)     417       444                   417       444       861       (120   1995   7/22/2016   7 to 30 Years
Advance Auto Parts   Clinton, MS   (b)     569       693                   569       693       1,262       (153   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Richmond Hill, GA   (b)     418       701                   418       701       1,119       (150   1995   7/22/2016   7 to 30 Years
Advance Auto Parts   Alton, IL   (b)     346       553                   346       553       899       (132   1997   7/22/2016   7 to 30 Years
Advance Auto Parts   Kingsland, GA   (b)     1,037       997                   1,037       997       2,034       (166   1998   7/22/2016   7 to 40 Years
Advance Auto Parts   Dayton, OH   (b)     317       572                   317       572       889       (119   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Camilla, GA   (b)     419       412                   419       412       831       (99   1995   7/22/2016   7 to 30 Years
Advance Auto Parts   St. Louis, MO   (b)     607       505                   607       505       1,112       (130   1997   7/22/2016   7 to 30 Years
 
11
9

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Advance Auto Parts   Covington, LA   (b)     507       426                   507       426       933       (117   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Columbus, GA   (b)     628       769                   628       769       1,397       (149   1998   7/22/2016   7 to 40 Years
Advance Auto Parts   Newton, MS   (b)     336       443                   336       443       779       (100   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Augusta, GA   (b)     482       750                   482       750       1,232       (142   1998   7/22/2016   7 to 40 Years
Advance Auto Parts   Tampa, FL   (b)     721       1,055                   721       1,055       1,776       (176   1997   7/22/2016   7 to 40 Years
Advance Auto Parts   New Smyrna Beach, FL   (b)     774       818                   774       818       1,592       (142   1999   7/22/2016   7 to 40 Years
Advance Auto Parts   Fort Lauderdale, FL   (b)     772       1,005                   772       1,005       1,777       (186   1996   7/22/2016   7 to 40 Years
Advance Auto Parts   Jackson, MS   (b)     396       423                   396       423       819       (93   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Castle Shannon, PA   (b)     620       732                   620       732       1,352       (167   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Savannah, GA   (b)     688       492                   688       492       1,180       (121   1995   7/22/2016   7 to 40 Years
Advance Auto Parts   College Park, GA   (b)     386       506                   386       506       892       (129   1998   7/22/2016   7 to 30 Years
Advance Auto Parts   Hattiesburg, MS   (b)     452       821                   452       821       1,273       (122   1997   7/22/2016   7 to 40 Years
Advance Auto Parts   Gibsonton, FL   (b)     526       448                   526       448       974       (140   1999   7/22/2016   7 to 30 Years
Advance Auto Parts   Hialeah, FL   (b)     682       1,054                   682       1,054       1,736       (180   1998   7/22/2016   7 to 40 Years
Advance Auto Parts   Montgomery, AL   (b)     435       494                   435       494       929       (159   1999   7/22/2016   7 to 30 Years
Advance Auto Parts   Greenfield, IN   (b)     502       1,070                   502       1,070       1,572       (50   2003   11/25/2019   4 to 36 Years
Advance Auto Parts   Trenton, OH   (b)     345       702                   345       702       1,047       (42   2003   11/25/2019   4 to 35 Years
Alabama Clinics   Dothan, AL   (b)     695       1,707             20       695       1,727       2,422       (371   2012   12/21/2016   1 to 40 Years
Alaska Club   Anchorage, AK   (b)     1,054       4,756                   1,054       4,756       5,810       (424   2006   8/15/2018   10 to 38 Years
Alaska Club   Anchorage, AK   (b)     2,864       8,258                   2,864       8,258       11,122       (832   1972   8/15/2018   11 to 43 Years
Alaska Club   Fairbanks, AK   (b)     2,012       9,941                   2,012       9,941       11,953       (1,114   1976   8/15/2018   10 to 39 Years
Alaska Club   Wasilla, AK   (b)     2,864       8,769                   2,864       8,769       11,633       (948   1984   8/15/2018   10 to 31 Years
Alaska Club   Anchorage, AK   (b)     5,366       15,115                   5,366       15,115       20,481       (1,509   1977   8/15/2018   11 to 32 Years
Albertsons   Tigard, OR   (b)     5,515       4,279                   5,515       4,279       9,794       (1,007   1998   4/1/2015   15 to 30 Years
Albertsons   Boise, ID   (b)     1,470       2,280                   1,470       2,280       3,750       (969   1982   12/17/2013   4 to 20 Years
Albertsons   Las Cruces, NM   (b)     1,132       2,765                   1,132       2,765       3,897       (853   1983   12/17/2013   5 to 30 Years
Albertsons   Midland, TX   (b)     1,498       3,096                   1,498       3,096       4,594       (1,305   1983   12/17/2013   5 to 20 Years
Aldi   Tupelo, MS   (b)     1,131       1,176       (372     (435     759       741       1,500       (191   1995   7/17/2013   4 to 22 Years
Allstate Insurance Company   Yuma, AZ   (a)     2,583       5,221       (1,704     (3,561     879       1,660       2,539           2007   7/17/2013   2
 
to 38 Years
AMC Theatres   Covina, CA   (b)     5,566       26,922                   5,566       26,922       32,488       (9,587   1997   6/23/2004   13 to 40 Years
AMC Theatres   Missoula, MT   (b)     2,333       3,406                   2,333       3,406       5,739       (1,670   1998   6/23/2004   15 to 40 Years
AMC Theatres   Johnston, IA   (a)     3,046       10,213       (2,405     (8,798     641       1,415       2,056       (8   1998   6/23/2004   2 to 17 Years
AMC Theatres   Yukon, OK   (a)     1,082       3,538             1,600       1,082       5,138       6,220       (1,201   2007   7/17/2013   8 to 33 Years
America’s Service Station   Dacula, GA   (b)     1,198       1,212                   1,198       1,212       2,410       (58   2000   11/25/2019   10 to 29 Years
America’s Service Station   Farragut, TN   (b)     959       1,613                   959       1,613       2,572       (56   2011   11/25/2019   13 to 42 Years
Amigos United   Plainview, TX   (b)     620       5,415                   620       5,415       6,035       (1,920   2000   8/25/2005   14 to 40 Years
Amware Fulfillment   Morrow, GA   (b)     1,731       12,990                   1,731       12,990       14,721       (107   1969   11/10/2020   8 to 25 Years
Andy’s Frozen Custard   Naperville, IL   (b)     976             27       983       1,003       983       1,986       (78   2016   6/30/2016   39 to 40 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Andy’s Frozen Custard   Rogers, AR   (b)     334       884                   334       884       1,218       (215   2005   9/30/2014   15 to 30 Years
Andy’s Frozen Custard   Orland Park, IL   (b)     999             290       1,299       1,289       1,299       2,588       (79   2019   9/12/2016   13 to 35 Years
Andy’s Frozen Custard   Kansas City, MO   (b)     772       18             916       772       934       1,706       (117   1995   9/19/2014   40 to 40 Years
Applebee’s   Augusta, GA   (b)     1,494       2,019                   1,494       2,019       3,513       (506   2005   7/17/2013   13 to 40 Years
Applebee’s   Aurora, CO   (b)     1,017       1,743                   1,017       1,743       2,760       (461   1998   7/17/2013   13 to 35 Years
Applebee’s   Colorado Springs, CO   (b)     937       1,120                   937       1,120       2,057       (467   1998   7/17/2013   8 to 25 Years
Applebee’s   Albany, OR   (b)     913       1,951                   913       1,951       2,864       (538   2005   7/17/2013   12 to 35 Years
Applebee’s   Macon, GA   (b)     838       1,723                   838       1,723       2,561       (436   1995   7/17/2013   13 to 40 Years
Applebee’s   Walla Walla, WA   (b)     665       2,072                   665       2,072       2,737       (603   2005   7/17/2013   11 to 35 Years
Applebee’s   Santa Fe, NM   (b)     2,120       2,033                   2,120       2,033       4,153       (513   1997   7/17/2013   13 to 40 Years
Applebee’s   Columbus, GA   (b)     1,199       1,911                   1,199       1,911       3,110       (496   2005   7/17/2013   13 to 40 Years
Applebee’s   Warner Robins, GA   (b)     1,228       1,714                   1,228       1,714       2,942       (459   1994   7/17/2013   11 to 40 Years
Applebee’s   Loveland, CO   (b)     602       1,913                   602       1,913       2,515       (428   1997   7/17/2013   12 to 40 Years
Applebee’s   Littleton, CO   (b)     696       1,943                   696       1,943       2,639       (474   1990   7/17/2013   11 to 40 Years
Applebee’s   Union Gap, WA   (b)     522       2,218                   522       2,218       2,740       (477   2004   7/17/2013   13 to 40 Years
Applebee’s   Gallup, NM   (b)     937       2,277                   937       2,277       3,214       (583   2004   7/17/2013   13 to 40 Years
Applebee’s   Savannah, GA   (b)     1,112       1,727                   1,112       1,727       2,839       (448   1993   7/17/2013   13 to 40 Years
Applebee’s   Columbus, GA   (b)     2,102       1,717                   2,102       1,717       3,819       (407   1993   7/17/2013   13 to 40 Years
Applebee’s   Macon, GA   (b)     874       1,712                   874       1,712       2,586       (451   1995   7/17/2013   11 to 40 Years
Applebee’s   Fountain, CO   (b)     861       2,226                   861       2,226       3,087       (539   2005   7/17/2013   12 to 38 Years
Applebee’s   Aurora, CO   (b)     1,521       1,498                   1,521       1,498       3,019       (487   1992   7/17/2013   9 to 32 Years
Applebee’s   Clovis, NM   (b)     861       2,172                   861       2,172       3,033       (582   2005   7/17/2013   13 to 40 Years
Applebee’s   Grand Junction, CO   (b)     1,363       1,990                   1,363       1,990       3,353       (524   1995   7/17/2013   10 to 40 Years
Applebee’s   Garden City, GA   (b)     1,184       1,465                   1,184       1,465       2,649       (400   1998   7/17/2013   9 to 40 Years
Applebee’s   Longview, WA   (b)     870       2,855                   870       2,855       3,725       (662   2004   7/17/2013   13 to 40 Years
Applebee’s   Chicago, IL   (b)     1,452       1,960                   1,452       1,960       3,412       (109   1999   11/25/2019   9 to 23 Years
Arby’s   New Castle, PA   (b)     573       1,042                   573       1,042       1,615       (481   1999   7/17/2013   7 to 25 Years
Arby’s   Jacksonville, FL   (b)     368       739                   368       739       1,107       (79   1998   11/25/2019   3 to 13 Years
Arby’s   Indianapolis, IN   (b)     604       342                   604       342       946       (39   1998   11/25/2019   3 to 15 Years
Arby’s   North Canton, OH   (b)     327       706       12       25       339       731       1,070       (46   1989   11/25/2019   4 to 26 Years
Arby’s   Moncks Corner, SC   (b)     569       826                   569       826       1,395       (87   1998   11/25/2019   7 to 13 Years
Arby’s   Martinsburg, WV   (b)     594       1,256                   594       1,256       1,850       (117   1999   11/25/2019   8
 
to 14 Years
Arby’s   Champlin, MN   (b)     710       408                   710       408       1,118       (200   2004   3/20/2015   8 to 20 Years
Arby’s   Sun City, AZ   (b)     594       926       5       (38     599       888       1,487       (60   1986   11/25/2019   8 to 21 Years
Arby’s   Tyler, TX   (b)     355       663                   355       663       1,018       (142   1980   12/29/2015   15 to 30 Years
Arby’s   Odessa, TX   (b)     499       941                   499       941       1,440       (192   1982   12/29/2015   15 to 30 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Arby’s   Midland, TX   (b)     768       893                   768       893       1,661       (187   1982   12/29/2015   15 to 30 Years
Arby’s   Amarillo, TX   (b)     304       943                   304       943       1,247       (77   1985   11/25/2019   4 to 16 Years
Armacell   Yukon, OK   (b)     1,318       17,900                   1,318       17,900       19,218       (124   2005   11/10/2020   6 to 30 Years
Ashley Furniture   Anderson, SC   (a)     870       1,909                   870       1,909       2,779       (596   2006   7/17/2013   8 to 40 Years
Ashley Furniture   Amarillo, TX   (b)     1,481       4,999       (1,099     (3,441     382       1,558       1,940       (62   2001   7/17/2013   3 to 29 Years
Ashley Furniture   Mount Juliet, TN   (b)     2,049       4,604             264       2,049       4,868       6,917       (1,131   2008   7/17/2013   10 to 45 Years
Ashley Furniture   El Paso, TX   (b)     2,602       5,092             12       2,602       5,104       7,706       (268   1973   11/25/2019   9 to 30 Years
Ashley Furniture (f)   Maple Shade, NJ   (b)     1,942       3,792       371       (67     2,313       3,725       6,038       (2,174   1998   7/17/2013   3 to 25 Years
At Home   Mesa, AZ   (b)     4,067       4,321             13       4,067       4,334       8,401       (1,354   2002   12/20/2016   10 to 20 Years
At Home   Louisville, KY   (b)     4,726       5,210             13       4,726       5,223       9,949       (1,437   1984   12/20/2016   9 to 20 Years
At Home   Corpus Christi, TX   (b)     3,734       4,949                   3,734       4,949       8,683       (1,753   1986   8/1/2016   8 to 20 Years
At Home   Jenison, MI   (b)     2,303       5,743             88       2,303       5,831       8,134       (1,259   1989   8/1/2016   8 to 30 Years
At Home   Buford, GA   (b)     1,940       4,704                   1,940       4,704       6,644       (979   1984   8/1/2016   8 to 30 Years
At Home   Broomfield, CO   (b)     4,538       4,675                   4,538       4,675       9,213       (1,494   1995   8/1/2016   9 to 20 Years
At Home   Lubbock, TX   (b)     2,129       7,926             12       2,129       7,938       10,067       (474   1985   11/25/2019   7 to 29 Years
At Home   Lutz, FL   (b)     9,058       6,196                   9,058       6,196       15,254       (122   2018   7/24/2020   13 to 34 Years
At Home   Whitehall, PA   (b)     3,354       7,088                   3,354       7,088       10,442       (614   2018   3/28/2019   10 to 30 Years
At Home   Plano, TX   (b)     4,481       11,495                   4,481       11,495       15,976       (650   2018   3/28/2019   16 to 40 Years
At Home   Frederick, MD   (b)     8,060       9,177             8       8,060       9,185       17,245       (841   2018   3/28/2019   12 to 31 Years
At Home   Live Oak, TX   (b)     6,554       12,444                   6,554       12,444       18,998       (739   2014   3/28/2019   16 to 38 Years
At Home   Mansfield, TX   (b)     2,839       9,324                   2,839       9,324       12,163       (625   2018   3/28/2019   15 to 35 Years
AT&T   Santa Clara, CA   (b)     2,873       8,252                   2,873       8,252       11,125       (1,732   2002   7/17/2013   5 to 48 Years
ATC Fitness   Southaven, MS   (b)     1,187       1,817                   1,187       1,817       3,004       (466   2014   9/17/2014   15 to 40 Years
Auria St. Clair   St Clair, MI   (b)     1,511       6,379                   1,511       6,379       7,890       (360   1991   1/9/2020   9 to 26 Years
Avalon Flooring   Rio Grande, NJ   (b)     753       3,299                   753       3,299       4,052       (641   2006   3/31/2015   11 to 40 Years
Bagger Dave’s Burger Tavern   Berkley, MI   (b)     410       329                   410       329       739       (28   1927   11/25/2019   8 to 27 Years
Bagger Dave’s Burger Tavern   Grand Rapids, MI   (b)     659       100                   659       100       759       (24   1985   11/25/2019   6 to 27 Years
Bank of America   Delray Beach, FL   (a)     3,831       16,789                   3,831       16,789       20,620       (3,099   1975   7/17/2013   8 to 50 Years
Bank of America   Hunt Valley, MD   (b)     13,131       74,628                   13,131       74,628       87,759       (3,029   1974   9/26/2019   9 to 52 Years
Best Buy   Wichita, KS   (b)     3,368       6,312                   3,368       6,312       9,680       (2,270   1984   7/17/2013   7 to 29 Years
Best Buy   Fayetteville, NC   (a)     1,560       6,893                   1,560       6,893       8,453       (1,685   1999   7/17/2013   6 to 41 Years
Best Buy   Evanston, IL   (b)     3,275       5,338                   3,275       5,338       8,613       (667   1993   7/17/2013   30 to 30 Years
Best Buy   Las Cruces, NM   (b)     1,328       2,616                   1,328       2,616       3,944       (701   2002   7/17/2013   8 to 41 Years
Big Lots (f)   Whiteville, NC   (b)     1,119       1,676                   1,119       1,676       2,795       (1,209   1988   7/17/2013   7 to 30 Years
Big Sandy Furniture   South Point, OH   (b)     1,030       3,123             12       1,030       3,135       4,165       (255   1990   11/25/2019   6 to 15 Years
Big Sandy Furniture   Parkersburg, WV   (b)     1,021       4,403             12       1,021       4,415       5,436       (541   1976   11/25/2019   3 to 10 Years
Big Sandy Furniture   Portsmouth, OH   (b)     368       1,936                   368       1,936       2,304       (110   1988   11/25/2019   7 to 23 Years
Big Sandy Furniture   Ashland, KY   (b)     696       767                   696       767       1,463       (85   1993   11/25/2019   6 to 15 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Big Sandy Furniture   Chillicothe, OH   (b)     511       2,614                   511       2,614       3,125       (143   1995   11/25/2019   7 to 25 Years
Big Sandy Furniture   Ashland, KY   (b)     739       2,316                   739       2,316       3,055       (169   1990   11/25/2019   7 to 19 Years
Big Sandy Furniture   Hurricane, WV   (b)     962       3,093                   962       3,093       4,055       (143   1998   11/25/2019   7 to 34 Years
Bi-Lo   Hartsville, SC   (b)     696       5,402                   696       5,402       6,098       (1,170   1988   9/30/2014   10 to 40 Years
BJ’s Wholesale Club   Fort Lauderdale, FL   (b)     6,775       18,649                   6,775       18,649       25,424       (4,822   2007   7/17/2013   12 to 37 Years
BJ’s Wholesale Club   Woodstock, GA   (a)     4,383       16,588                   4,383       16,588       20,971       (5,064   2001   7/17/2013   8 to 33 Years
BJ’s Wholesale Club   Haverhill, MA   (b)     3,192       15,353                   3,192       15,353       18,545       (4,584   2007   7/17/2013   11 to 32 Years
BJ’s Wholesale Club   Tampa, FL   (b)     4,810       10,220             35       4,810       10,255       15,065       (1,904   1993   1/10/2017   10 to 30 Years
BJ’s Wholesale Club   Taylor, MI   (b)     4,275       17,672             109       4,275       17,781       22,056       (496   2019   12/12/2019   14 to 50 Years
BJ’s Wholesale Club   Pineville, NC   (b)     2,034       9,305                   2,034       9,305       11,339       (208   1999   1/31/2020   9 to 43 Years
BJ’s Wholesale Club   Chesterfield, MI   (b)     7,286       14,971                   7,286       14,971       22,257       (147   2020   9/15/2020   15 to 50 Years
BJ’s Wholesale Club   Millsboro, DE   (b)     8,394       16,153                   8,394       16,153       24,547           2008   12/15/2020   10 to 40 Years
Bojangles’   Hickory, NC   (b)     598       1,893                   598       1,893       2,491       (230   1995   11/25/2019   5 to 10 Years
Books-A-Million   Rapid City, SD   (b)     575       2,568                   575       2,568       3,143       (700   2001   7/17/2013   2 to 45 Years
Boscovs   Voorhees, NJ   (b)     1,803       4,314                   1,803       4,314       6,117       (438   1970   11/25/2019   3 to 25 Years
Brookshire Brothers   Cleveland, TX   (b)     465       2,867                   465       2,867       3,332       (2,234   1991   12/1/2005   15 to 20 Years
Brookshire Brothers   Corrigan, TX   (b)     395       630                   395       630       1,025       (569   1971   12/1/2005   15 to 20 Years
Brookshire Brothers   Diboll, TX   (b)     775       872                   775       872       1,647       (806   1974   12/1/2005   15 to 20 Years
Brookshire Brothers   Lufkin, TX   (b)     1,178       352                   1,178       352       1,530       (427   1977   12/1/2005   15 to 20 Years
Brookshire Brothers   Navasota, TX   (b)     781       1,499                   781       1,499       2,280       (904   1992   12/1/2005   15 to 30 Years
Brookshire Brothers   Timpson, TX   (b)     253       312                   253       312       565       (309   1978   12/1/2005   15 to 20 Years
Brookshire Brothers   Hallettsville, TX   (b)     550       1,545                   550       1,545       2,095       (525   2004   3/31/2014   10 to 30 Years
Buffalo Wild Wings   Gaylord, MI   (b)     1,023       1,125                   1,023       1,125       2,148       (88   2014   11/25/2019   9 to 33 Years
Buffalo Wild Wings   Wesley Chapel, FL   (b)     2,672       1,725                   2,672       1,725       4,397       (377   2015   8/18/2015   14 to 40 Years
Buffalo Wild Wings   Birch Run, MI   (b)     1,852       1,290                   1,852       1,290       3,142       (595   2014   12/24/2014   14 to 30 Years
Buffalo Wild Wings   Clinton Township, MI   (b)     1,377       911                   1,377       911       2,288       (307   2003   11/5/2014   14 to 30 Years
Buffalo Wild Wings   Brandon, FL   (b)     1,358       614                   1,358       614       1,972       (336   2004   11/5/2014   14 to 20 Years
Burger King   Saint Ann, MO   (b)     470       1,800                   470       1,800       2,270       (77   1985   11/25/2019   10 to 34 Years
Burger King   Garner, NC   (b)     600       765                   600       765       1,365       (508   1995   9/29/2006   15 to 30 Years
Burger King   Fayetteville, NC   (b)     607       1,020                   607       1,020       1,627       (699   1996   9/29/2006   15 to 30 Years
Burger King   Springfield, IL   (b)     693       472                   693       472       1,165       (53   1988   11/25/2019   8 to 20 Years
Burger King   Louisville, KY   (b)     829       684                   829       684       1,513       (72   1994   11/25/2019   4 to 18 Years
Burger King   Buffalo, NY   (b)     761       298                   761       298       1,059       (67   1993   11/25/2019   5 to 17 Years
Burger King   Buffalo, NY   (b)     83       806                   83       806       889       (126   1976   11/25/2019   5 to 12 Years
Burger King   Springville, NY   (b)     313       614                   313       614       927       (89   1988   11/25/2019   5 to 19 Years
Burger King   Cheektowaga, NY   (b)     484       310                   484       310       794       (76   1985   11/25/2019   5 to 18 Years
Burger King   Fayetteville, NC   (b)     612       739                   612       739       1,351       (77   1987   11/25/2019   7
 
to 14 Years
 
12
3

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Burger King   Lillington, NC   (b)     367       771       6       (6     373       765       1,138       (122   1992   11/25/2019   3 to 8 Years
Burger King   Decatur, IL   (b)     474       468                   474       468       942       (50   1992   11/25/2019   10 to 18 Years
Burger King   Durham, NC   (b)     1,253                         1,253             1,253           (e)   7/17/2013   (e)
Burger King   Mebane, NC   (b)     846       682                   846       682       1,528       (413   1993   9/29/2006   15 to 30 Years
Burger King   Apopka, FL   (b)     778       670                   778       670       1,448       (61   1977   11/25/2019   9 to 24 Years
Burger King   Orlando, FL   (b)     1,175       515                   1,175       515       1,690       (52   1985   11/25/2019   9 to 20 Years
Burger King   Gilman, IL   (b)     363       337                   363       337       700       (72   1998   11/25/2019   3 to 12 Years
Caliber Collision   Suwanee, GA   (b)     442       1,612                   442       1,612       2,054       (233   1986   11/25/2019  
4
to 8 Years
Caliber Collision   Conroe, TX   (b)     2,056       2,306             32       2,056       2,338       4,394       (362   2016   12/28/2016   14 to 50 Years
Caliber Collision   Houston, TX   (b)     2,089       2,332             33       2,089       2,365       4,454       (335   2016   3/16/2017   14 to 50 Years
Camping World   Poteau, OK   (b)     2,210       3,839             17       2,210       3,856       6,066       (824   2015   3/22/2017   15 to 30 Years
Camping World   Wentzville, MO   (b)     2,040       5,133             1,264       2,040       6,397       8,437       (801   2015   3/27/2015   39 to 40 Years
Camping World   Tulsa, OK   (b)     4,569       88             6,944       4,569       7,032       11,601       (1,365   2016   12/15/2016   11 to 40 Years
Camping World   Summerfield, FL   (b)     3,059       3,949                   3,059       3,949       7,008       (1,234   2004   8/29/2016   10 to 30 Years
Camping World   Monticello, MN   (b)     3,873       769             1,386       3,873       2,155       6,028       (963   2016   12/29/2016   9 to 30 Years
Camping World   Biloxi, MS   (b)     3,274       627             6,334       3,274       6,961       10,235       (818   2016   12/22/2016   15 to 40 Years
Camping World   Kenosha, WI   (b)     3,522       1,896             12       3,522       1,908       5,430       (190   2004   11/25/2019   9 to 40 Years
Camping World   Saukville, WI   (b)     3,073       3,724             12       3,073       3,736       6,809       (253   2014   11/25/2019   8 to 40 Years
Car Wash USA Express   Van Buren, AR   (b)     370       1,537                   370       1,537       1,907       (63   2018   9/27/2019   14 to 38 Years
Car Wash USA Express   Oneonta, AL   (b)     500       1,368                   500       1,368       1,868       (64   2013   9/27/2019   12 to 35 Years
Car Wash USA Express   Chillicothe, OH   (b)     644       3,918                   644       3,918       4,562       (146   2017   9/27/2019   14 to 39 Years
Car Wash USA Express   Memphis, TN   (b)     103       466                   103       466       569       (27   2014   9/27/2019   9 to 35 Years
Car Wash USA Express   Birmingham, AL   (b)     776       3,031                   776       3,031       3,807       (142   2004   9/27/2019   11 to 32 Years
Car Wash USA Express   Hernando, MS   (b)     892       3,073                   892       3,073       3,965       (125   2015   9/27/2019   14 to 38 Years
Car Wash USA Express   Fort Smith, AR   (b)     431       2,014                   431       2,014       2,445       (90   2017   9/27/2019   11 to 34 Years
Car Wash USA Express   Boaz, AL   (b)     155       781                   155       781       936       (38   2011   9/27/2019   10 to 32 Years
Car Wash USA Express   Corinth, MS   (b)     402       4,509                   402       4,509       4,911       (177   2011   9/27/2019   14 to 35 Years
Car Wash USA Express   Madisonville, KY   (b)     421       1,565                   421       1,565       1,986       (65   2018   9/27/2019   13 to 39 Years
Car Wash USA Express   Sylacauga, AL   (b)     360       2,227                   360       2,227       2,587       (90   2017   9/27/2019   13 to 39 Years
Car Wash USA Express   Springfield, OH   (b)     673       3,330                   673       3,330       4,003       (139   2014   9/27/2019   13 to 36 Years
Car Wash USA Express   Dothan, AL   (b)     816       3,586                   816       3,586       4,402       (148   2008   9/27/2019   11 to 35 Years
Car Wash USA Express   Oakland, TN   (b)     503       2,671                   503       2,671       3,174       (101   2017   9/27/2019   15 to 38 Years
Car Wash USA Express   Rainbow City, AL   (b)     301       1,875                   301       1,875       2,176       (84   1998   9/27/2019   12 to 34 Years
Car Wash USA Express   Birmingham, AL   (b)     458       2,319                   458       2,319       2,777       (112   2006   9/27/2019   12 to 33 Years
Car Wash USA Express   Rome, GA   (b)     290       1,398                   290       1,398       1,688       (68   2007   9/27/2019   12 to 33 Years
Car Wash USA Express   Conway, AR   (b)     306       762                   306       762       1,068       (35   2018   9/27/2019   14 to 38 Years
Car Wash USA Express   Warner Robins, GA   (b)     568       2,558                   568       2,558       3,126       (113   2013   9/27/2019   14 to 36 Years
 
12
4

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Car Wash USA Express   Douglas, GA   (b)     582       2,987                   582       2,987       3,569       (112   2011   9/27/2019   14 to 39 Years
Car Wash USA Express   Olive Branch, MS   (b)     1,071       3,515                   1,071       3,515       4,586       (164   2006   9/27/2019   13 to 33 Years
Car Wash USA Express   Orem, UT   (b)     2,703       15,522                   2,703       15,522       18,225       (609   2005   9/27/2019   13 to 36 Years
Car Wash USA Express   Memphis, TN   (b)     380       640                   380       640       1,020       (55   2008   9/27/2019   9 to 29 Years
Car Wash USA Express   Centre, AL   (b)     156       771                   156       771       927       (39   2012   9/27/2019   11 to 33 Years
CarMax   Ontario, CA   (b)     7,981       6,937             (90     7,981       6,847       14,828       (2,297   2005   6/30/2005   40 to 40 Years
CarMax   Pompano Beach, FL   (b)     6,153       5,010             (91     6,153       4,919       11,072       (1,650   2004   6/30/2005   40 to 40 Years
CarMax   Midlothian, VA   (b)     4,775       6,056             (100     4,775       5,956       10,731       (1,998   2004   6/30/2005   40 to 40 Years
CarMax   Pineville, NC   (a)     4,865       1,902                   4,865       1,902       6,767       (1,009   2002   7/17/2013   10 to 30 Years
CarMax   Greenville, SC   (b)     4,947       20,682             12       4,947       20,694       25,641       (867   1999   11/25/2019   6 to 35 Years
CarMax   Kennesaw, GA   (b)     10,920       3,192             13       10,920       3,205       14,125       (312   1995   11/25/2019   7 to 38 Years
CarMax   Raleigh, NC   (b)     5,603       5,063             12       5,603       5,075       10,678       (405   1994   11/25/2019   8 to 30 Years
Carrington College   Mesquite, TX   (b)     2,534       1,780       (886     (403     1,648       1,377       3,025           1996   7/17/2013   3 to 15 Years
Chapala   Boise, ID   (b)     477       139                   477       139       616       (19   1998   11/25/2019   3 to 20 Years
Charleston’s Restaurant   Norman, OK   (b)     1,328       3,380             12       1,328       3,392       4,720       (277   1992   11/25/2019   2 to 15 Years
Charleston’s Restaurant   Tulsa, OK   (b)     1,292       3,075                   1,292       3,075       4,367       (191   2002   11/25/2019   2 to 20 Years
Chick-Fil-A   Carrollton, GA   (b)     985       725                   985       725       1,710       (283   1995   7/17/2013   11 to 33 Years
Childcare Network   East Point, GA   (b)     411       1,279                   411       1,279       1,690       (186   2016   12/13/2016   14 to 40 Years
Childcare Network   Elon, NC   (b)     486       846                   486       846       1,332       (244   1998   12/2/2016   4 to 30 Years
Childcare Network  
Winston-Salem, NC
  (b)     541       659                   541       659       1,200       (154   1993   12/2/2016   5 to 30 Years
Childcare Network   Greensboro, NC   (b)     360       540                   360       540       900       (96   1949   12/2/2016   9 to 30 Years
Childcare Network   Burlington, NC   (b)     306       533                   306       533       839       (137   1971   12/13/2016  
7
to
20
Years
Childcare Network   Grand Prairie, TX   (b)     1,057       2,350                   1,057       2,350       3,407       (626   2007   7/17/2015   15 to 30 Years
Childcare Network   Denton, TX   (b)     626       1,909                   626       1,909       2,535       (444   2000   7/17/2015   15 to 30 Years
Childcare Network   Fort Worth, TX   (b)     392       871                   392       871       1,263       (249   2006   7/17/2015   15 to 30 Years
Childcare Network   Columbus, GA   (b)     342       1,096             30       342       1,126       1,468       (219   2015   12/22/2015   15 to 40 Years
Childcare Network   High Point, NC   (b)     205       978                   205       978       1,183       (196   1981   12/22/2015   15 to 30 Years
Childcare Network   Hampton, GA   (b)     391       460                   391       460       851       (142   2005   12/22/2015   15 to 30 Years
Childcare Network   Warner Robins, GA   (b)     431       620                   431       620       1,051       (220   1995   2/27/2015   15 to 20 Years
Childcare Network   Fort Walton Beach, FL   (b)     200       491                   200       491       691       (119   1977   2/27/2015   15 to 30 Years
Childcare Network   Sanford, NC   (b)     200       611                   200       611       811       (146   2002   2/27/2015   15 to 30 Years
Childcare Network   Norcross, GA   (b)     831       624                   831       624       1,455       (246   1985   3/30/2015   15 to 20 Years
Childcare Network   Evans, GA   (b)     508       640                   508       640       1,148       (182   2003   11/14/2014   15 to 30 Years
Childcare Network   Stockbridge, GA   (b)     533       1,236             (16     533       1,220       1,753       (344   2000   10/31/2014   15 to 30 Years
Childcare Network   Marietta, GA   (b)     538       792             11       538       803       1,341       (174   2009   9/28/2016   11 to 30 Years
Childcare Network   Chattanooga, TN   (b)     684       841             11       684       852       1,536       (171   1999   9/28/2016   10 to 30 Years
Childcare Network   Pensacola, FL   (b)     390       1,360                   390       1,360       1,750       (140   2016   2/23/2017   15 to 50 Years
 
12
5

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Childtime   Cuyahoga Falls, OH   (b)     279       727                   279       727       1,006       (343   1974   7/17/2013   8 to 25 Years
Childtime   Arlington, TX   (b)     365       532                   365       532       897       (274   2006   7/17/2013   10 to 33 Years
Childtime   Oklahoma City, OK   (b)     290       341                   290       341       631       (195   1985   7/17/2013   11 to 19 Years
Childtime   Rochester, NY   (b)     242       539                   242       539       781       (219   1981   7/17/2013   8 to 28 Years
Childtime   Modesto, CA   (b)     386       664                   386       664       1,050       (308   1986   7/17/2013   9 to 22 Years
Childtime   Morrisville, NC   (b)     544       1,378                   544       1,378       1,922       (305   2010   2/19/2015   15 to 40 Years
Chili’s   Paris, TX   (b)     552       1,821                   552       1,821       2,373       (523   1999   7/17/2013   11 to 35 Years
Chili’s   Tilton, NH   (b)     1,565                         1,565             1,565           (e)   7/17/2013   (e)
Chili’s   Fredericksburg, TX   (b)     511       1,516                   511       1,516       2,027       (486   1985   7/17/2013   11 to 30 Years
Chuck-A-Rama and Grub Steak   Ogden, UT   (b)     610       1,648                   610       1,648       2,258       (159   1998   1/22/2019   10 to 28 Years
Chuck-A-Rama and Grub Steak   Orem, UT   (b)     803       1,141                   803       1,141       1,944       (130   1991   1/22/2019   7 to 22 Years
Chuck-A-Rama and Grub Steak   Lehi, UT   (b)     830       2,141                   830       2,141       2,971       (171   2011   1/22/2019   10 to 37 Years
Chuck-A-Rama and Grub Steak   Ammon, ID   (b)     503       2,315                   503       2,315       2,818       (193   2003   1/22/2019   10 to 32 Years
Chuck-A-Rama and Grub Steak   Park City, UT   (b)     205       2,501                   205       2,501       2,706       (156   1978   1/22/2019   11 to 34 Years
Chuck-A-Rama and Grub Steak   Bountiful, UT   (b)     871       1,406                   871       1,406       2,277       (139   1995   1/22/2019   10 to 25 Years
Chuck-A-Rama and Grub Steak   Boise, ID   (b)     673       2,071                   673       2,071       2,744       (179   1998   1/22/2019   11 to 28 Years
Chuck-A-Rama and Grub Steak   Provo, UT   (b)     723       1,549                   723       1,549       2,272       (168   1990   1/22/2019   10 to 22 Years
Chuck-A-Rama and Grub Steak   Draper, UT   (b)     943       1,876                   943       1,876       2,819       (174   2004   1/22/2019   11 to 32 Years
Chuck-A-Rama and Grub Steak   St. George, UT   (b)     708       2,036                   708       2,036       2,744       (183   1995   1/22/2019   10 to 26 Years
Chuck-A-Rama and Grub Steak   Murray, UT   (b)     512       1,328                   512       1,328       1,840       (129   1996   1/22/2019   10 to 26 Years
Chuck-A-Rama and Grub Steak   Salt Lake City, UT   (b)     1,552       1,747                   1,552       1,747       3,299       (197   1964   1/22/2019   9 to 22 Years
Chuck-A-Rama and Grub Steak   Logan, UT   (b)     276       2,696                   276       2,696       2,972       (169   2011   1/22/2019   13 to 37 Years
Church’s Chicken   Balch Springs, TX   (b)     329       576                   329       576       905       (247   1986   7/17/2013   11 to 31 Years
Church’s Chicken   Rio Grand City, TX   (b)     1,746       554                   1,746       554       2,300       (171   1984   7/17/2013   12 to 35 Years
Church’s Chicken   Fort Worth, TX   (b)     164       573                   164       573       737       (206   1965   7/17/2013   11 to 25 Years
Church’s Chicken   Midland, TX   (b)     195       432                   195       432       627       (130   1972   7/17/2013   9 to 35 Years
Church’s Chicken   Columbus, GA   (b)     640       403                   640       403       1,043       (220   1983   7/17/2013   11 to
 
23 Years
Church’s Chicken   Carrolton, TX   (b)     361       415                   361       415       776       (214   1997   7/17/2013   11 to 25 Years
Church’s Chicken   Phoenix, AZ   (b)     384       528                   384       528       912       (196   1974   7/17/2013   11 to 27 Years
Church’s Chicken   Tucson, AZ   (b)     191       552                   191       552       743       (156   1981   7/17/2013   11 to 35 Years
Church’s Chicken   Brownsville, TX   (b)     667       785                   667       785       1,452       (216   1985   7/17/2013   10 to 35 Years
Church’s Chicken   Abilene, TX   (b)     198       311                   198       311       509       (130   1975   7/17/2013   10 to 26 Years
Church’s Chicken   San Antonio, TX   (b)     685       257                   685       257       942       (96   1976   7/17/2013   9 to 35 Years
Church’s Chicken   San Antonio, TX   (b)     592       336                   592       336       928       (121   1968   7/17/2013   9 to 35 Years
Church’s Chicken   Montgomery, AL   (b)     247       376                   247       376       623       (209   1999   7/17/2013   10 to 24 Years
Church’s Chicken   Kansas City, MO   (b)     462       673                   462       673       1,135       (207   1996   7/17/2013   10 to 35 Years
Church’s Chicken   Port Lavaca, TX   (b)     339       594                   339       594       933       (211   1985   7/17/2013   11 to 28 Years
 
12
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Church’s Chicken   Dallas, TX   (b)     164       431                   164       431       595       (214   1968   7/17/2013   10 to 18 Years
Church’s Chicken   Oro Valley, AZ   (b)     262       193                   262       193       455       (133   1983   7/17/2013   11 to 23 Years
Church’s Chicken   McAllen, TX   (b)     601       539                   601       539       1,140       (173   1985   7/17/2013   11 to 35 Years
Church’s Chicken   Memphis, TN   (b)     156       351                   156       351       507       (164   1971   7/17/2013   7 to 25 Years
Church’s Chicken   Kansas City, MO   (b)     189       837                   189       837       1,026       (313   1996   7/17/2013   9 to 25 Years
Church’s Chicken   Edinburg, TX   (b)     624       888                   624       888       1,512       (250   1985   7/17/2013   11 to 35 Years
Church’s Chicken   North Little Rock, AR   (b)     128       351                   128       351       479       (143   1999   7/17/2013   10 to 28 Years
Church’s Chicken   Grand Prairie, TX   (b)     147       535                   147       535       682       (186   1985   7/17/2013   11 to 30 Years
Church’s Chicken   Phoenix, AZ   (b)     400       120                   400       120       520       (109   1977   7/17/2013   11 to 13 Years
Church’s Chicken   Pine Bluff, AR   (b)     854       431                   854       431       1,285       (126   1971   7/17/2013   7 to 35 Years
Church’s Chicken   Oklahoma City, OK   (b)     223       469                   223       469       692       (239   1998   7/17/2013   8 to 22 Years
Church’s Chicken   San Antonio, TX   (b)     375       282                   375       282       657       (156   1965   7/17/2013   9 to 21 Years
Church’s Chicken   Jackson, MS   (b)     195       582                   195       582       777       (193   2000   7/17/2013   11 to 30 Years
Church’s Chicken   Victoria, TX   (b)     129       490                   129       490       619       (189   1985   7/17/2013   11 to 28 Years
Church’s Chicken   Richland Hills, TX   (b)     229       199                   229       199       428       (103   1999   7/17/2013   10 to 25 Years
Church’s Chicken   Brownsville, TX   (b)     267       652                   267       652       919       (177   2000   7/17/2013   10 to 35 Years
Church’s Chicken   Tulsa, OK   (b)     767       466                   767       466       1,233       (161   1976   7/17/2013   8 to 35 Years
Church’s Chicken   Dallas, TX   (b)     249       431                   249       431       680       (136   1985   7/17/2013   9 to 33 Years
Church’s Chicken   Pleasanton, TX   (b)     230       1,052                   230       1,052       1,282       (296   1985   7/17/2013   11 to 35 Years
Church’s Chicken   Tyler, TX   (b)     227       527                   227       527       754       (154   1976   7/17/2013   11 to 35 Years
Church’s Chicken   Oklahoma City, OK   (b)     200       428                   200       428       628       (184   1971   7/17/2013   9 to 25 Years
Church’s Chicken   Laurel, MS   (b)     690       290                   690       290       980       (161   1971   7/17/2013   11 to 24 Years
Church’s Chicken   Atlanta, GA   (b)     336       346                   336       346       682       (222   1981   7/17/2013   11 to 22 Years
Church’s Chicken   Garland, TX   (b)     141       455                   141       455       596       (180   1986   7/17/2013   10 to 25 Years
Church’s Chicken   LaGrange, GA   (b)     555       44                   555       44       599       (294   1978   7/17/2013   7 to 30 Years
Church’s Chicken   McAllen, TX   (b)     747       408                   747       408       1,155       (125   1992   7/17/2013   10 to 35 Years
Church’s Chicken   Decatur, GA   (b)     566       49                   566       49       615       (106   1979   7/17/2013   3 to 11 Years
Church’s Chicken   East Point, GA   (b)     429       245                   429       245       674       (211   1977   7/17/2013   11 to 19 Years
Church’s Chicken   Brownsville, TX   (b)     571       930                   571       930       1,501       (304   2002   7/17/2013   11 to 35 Years
Church’s Chicken   Macon, GA   (b)     291       628                   291       628       919       (185   1983   7/17/2013   10 to 35 Years
Church’s Chicken   Kingsville, TX   (b)     263       461                   263       461       724       (145   1977   7/17/2013   9 to 35 Years
Church’s Chicken   Atlanta, GA   (b)     554       258                   554       258       812       (182   1980   7/17/2013   11 to 23 Years
Church’s Chicken   Victoria, TX   (b)     367       182                   367       182       549       (104   1984   7/17/2013   11 to 22 Years
Church’s Chicken   Norfolk, VA   (b)     373       517                   373       517       890       (284   1988   7/17/2013   7 to 20 Years
Church’s Chicken   Dallas, TX   (b)     315       209                   315       209       524       (107   1999   7/17/2013   10 to 25 Years
Church’s Chicken   Austin, TX   (b)     904       477                   904       477       1,381       (148   1976   7/17/2013   11 to 35 Years
Church’s Chicken   Atlanta, GA   (b)     394       268                   394       268       662       (228   1975   7/17/2013   11 to 16 Years
 
12
7

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Church’s Chicken   Donna, TX   (b)     1,091       540                   1,091       540       1,631       (174   1984   7/17/2013   10 to 35 Years
Church’s Chicken   Montgomery, AL   (b)     313       601                   313       601       914       (288   1999   7/17/2013   10 to
27
Years
Church’s Chicken   Phoenix, AZ   (b)     599       412                   599       412       1,011       (146   1980   7/17/2013   10 to
35
Years
Church’s Chicken   Brownsville, TX   (b)     795       556                   795       556       1,351       (157   1977   7/17/2013   10 to 35 Years
Church’s Chicken   Phoenix, AZ   (b)     523       97                   523       97       620       (100   1976   7/17/2013   9 to 16 Years
Church’s Chicken   Elsa, TX   (b)     1,159       141                   1,159       141       1,300       (90   1984   7/17/2013   11 to 35 Years
Church’s Chicken   Birmingham, AL   (b)     107       508                   107       508       615       (238   1983   7/17/2013   7 to 19 Years
Church’s Chicken   Marietta, GA   (b)     350       173                   350       173       523       (144   1976   7/17/2013   11 to 20 Years
Church’s Chicken   Memphis, TN   (b)     264       592                   264       592       856       (193   1971   7/17/2013   11 to 35 Years
Church’s Chicken   Copperas Cove, TX   (b)     186       249                   186       249       435       (118   1973   7/17/2013   11 to 23 Years
Church’s Chicken   Irving, TX   (b)     463       338                   463       338       801       (103   1967   7/17/2013   10 to 35 Years
Church’s Chicken   New Braunfels, TX   (b)     302       526                   302       526       828       (211   1973   7/17/2013   10 to 27 Years
Church’s Chicken   Kirby, TX   (b)     224       262                   224       262       486       (149   1985   7/17/2013   9 to 18 Years
Church’s Chicken   Memphis, TN   (b)     163       295                   163       295       458       (141   1979   7/17/2013   10 to 25 Years
Church’s Chicken   Hobbs, NM   (b)     706       534                   706       534       1,240       (197   1974   7/17/2013   11 to 35 Years
Church’s Chicken   San Antonio, TX   (b)     544       521                   544       521       1,065       (168   1967   7/17/2013   11 to 33 Years
Church’s Chicken   Little Rock, AR   (b)     332       432                   332       432       764       (132   1971   7/17/2013   9 to 35 Years
Church’s Chicken   Greenville, TX   (b)     325       441                   325       441       766       (133   1972   7/17/2013   10 to 35 Years
Church’s Chicken   Columbus, GA   (b)     342       49                   342       49       391       (116   1978   7/17/2013   9 to 23 Years
Church’s Chicken   Portsmouth, VA   (b)     574       419                   574       419       993       (202   1988   7/17/2013   10 to 25 Years
Church’s Chicken   Jackson, MS   (b)     996       610                   996       610       1,606       (211   1978   7/17/2013   11 to 35 Years
Church’s Chicken   Phoenix, AZ   (b)     368       267                   368       267       635       (122   1974   7/17/2013   11 to 23 Years
Church’s Chicken   Floresville, TX   (b)     109       555                   109       555       664       (220   1985   7/17/2013   9 to 25 Years
Church’s Chicken   Montgomery, AL   (b)     288       623                   288       623       911       (182   1998   7/17/2013   9 to 35 Years
Church’s Chicken   Alamo, TX   (b)     1,745       715                   1,745       715       2,460       (190   1984   7/17/2013   9 to 35 Years
Church’s Chicken   Mission, TX   (b)     577       598                   577       598       1,175       (185   1981   7/17/2013   9 to 35 Years
Church’s Chicken   Kansas City, MO   (b)     312       574                   312       574       886       (197   1996   7/17/2013   10 to 30 Years
Church’s Chicken   Cleburne, TX   (b)     129       482                   129       482       611       (199   1997   7/17/2013   9 to 25 Years
Church’s Chicken   Brownsville, TX   (b)     430       656                   430       656       1,086       (288   1985   7/17/2013   11 to 29 Years
Church’s Chicken   Decatur, GA   (b)     570       30                   570       30       600       (102   1981   7/17/2013   7 to 25 Years
Church’s Chicken   Odessa, TX   (b)     670       563                   670       563       1,233       (182   1972   7/17/2013   10 to 35 Years
Church’s Chicken   Memphis, TN   (b)     212       245                   212       245       457       (160   1971   7/17/2013   7 to 25 Years
Church’s Chicken   Kansas City, MO   (b)     135       616                   135       616       751       (230   1996   7/17/2013   10 to 25 Years
Church’s Chicken   Phoenix, AZ   (b)     415       403                   415       403       818       (150   1975   7/17/2013   8 to 27 Years
Church’s Chicken   Kansas City, MO   (b)     310       580                   310       580       890       (199   1996   7/17/2013   10 to 31 Years
Church’s Chicken   Eagle Pass, TX   (b)     597       385                   597       385       982       (141   1977   7/17/2013   9 to 35 Years
Church’s Chicken   Phenix City, AL   (b)     493       497                   493       497       990       (135   1978   7/17/2013   8 to 35 Years
 
12
8

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Church’s Chicken   Mercedes, TX   (b)     535       575                   535       575       1,110       (177   1982   7/17/2013   11 to 35 Years
Church’s Chicken   Tucson, AZ   (b)     221       434                   221       434       655       (157   1980   7/17/2013   11 to 27 Years
Church’s Chicken   Dallas, TX   (b)     174       450                   174       450       624       (180   1969   7/17/2013   10 to 26 Years
Church’s Chicken   Raymondville, TX   (b)     660       455                   660       455       1,115       (175   1984   7/17/2013   9 to 35 Years
Church’s Chicken   Temple, TX   (b)     705       493                   705       493       1,198       (145   1983   7/17/2013   10 to 35 Years
Church’s Chicken   Pharr, TX   (b)     694       441                   694       441       1,135       (196   1997   7/17/2013   10 to 26 Years
Church’s Chicken   Midwest City, OK   (b)     318       623                   318       623       941       (188   1985   7/17/2013   9 to 35 Years
Church’s Chicken   San Antonio, TX   (b)     283       573                   283       573       856       (232   1971   7/17/2013   11 to 33 Years
Church’s Chicken   Vicksburg, MS   (b)     278       333                   278       333       611       (166   1972   7/17/2013   11 to 25 Years
Church’s Chicken   Lewisville, TX   (b)     913       470                   913       470       1,383       (183   1976   7/17/2013   8 to 35 Years
Church’s Chicken   Nogales, AZ   (b)     207       448                   207       448       655       (186   1976   7/17/2013   11 to 25 Years
Church’s Chicken   Roma, TX   (b)     478       855                   478       855       1,333       (268   1985   7/17/2013   11 to 35 Years
Church’s Chicken   Little Rock, AR   (b)     263       492                   263       492       755       (154   1975   7/17/2013   9 to 35 Years
Church’s Chicken   Jackson, MS   (b)     215       476                   215       476       691       (191   1977   7/17/2013   11 to 25 Years
Church’s Chicken   Montgomery, AL   (b)     455       579                   455       579       1,034       (219   1972   7/17/2013   11 to 33 Years
Church’s Chicken   Roswell, NM   (b)     343       321                   343       321       664       (207   1974   7/17/2013   11 to 23 Years
Church’s Chicken   Haltom City, TX   (b)     571       425                   571       425       996       (144   2007   7/17/2013   11 to 35 Years
Church’s Chicken   Tulsa, OK   (b)     315       717                   315       717       1,032       (207   1976   7/17/2013   10 to 35 Years
Church’s Chicken   San Benito, TX   (b)     1,641       688                   1,641       688       2,329       (190   1977   7/17/2013   9 to 35 Years
Church’s Chicken   Americus, GA   (b)     282       406                   282       406       688       (214   1978   7/17/2013   11 to 23 Years
Church’s Chicken   Altus, OK   (b)     70       413                   70       413       483       (163   1980   7/17/2013   7 to 25 Years
Church’s Chicken   Memphis, TN   (b)     288       278                   288       278       566       (186   1976   7/17/2013   6 to 20 Years
Church’s Chicken   San Antonio, TX   (b)     397       700                   397       700       1,097       (213   1984   7/17/2013   11 to 35 Years
Church’s Chicken   Lubbock, TX   (b)     325       794                   325       794       1,119       (247   2004   7/17/2013   11 to 34 Years
Church’s Chicken   Harlingen, TX   (b)     226       519                   226       519       745       (193   1973   7/17/2013   11 to 30 Years
Church’s Chicken   Kansas City, MO   (b)     348       730                   348       730       1,078       (220   1996   7/17/2013   10 to 35 Years
Church’s Chicken   Fort Worth, TX   (b)     157       263                   157       263       420       (154   1965   7/17/2013   11 to 20 Years
Church’s Chicken   San Antonio, TX   (b)     205       1,042       (82     (1,042     123             123           1976   7/17/2013   (g)
Church’s Chicken   Fort Worth, TX   (b)     200       643                   200       643       843       (222   1979   7/17/2013   11 to 30 Years
Church’s Chicken   Memphis, TN   (b)     180       316                   180       316       496       (165   1971   7/17/2013   7 to 20 Years
Church’s Chicken   Birmingham, AL   (b)     192       656                   192       656       848       (327   1981   7/17/2013   7 to 19 Years
Church’s Chicken   Brownsville, TX   (b)     369       679                   369       679       1,048       (210   1972   7/17/2013   11 to 35 Years
Church’s Chicken   Macon, GA   (b)     185       553                   185       553       738       (193   1980   7/17/2013   11 to 30 Years
Church’s Chicken   Mesquite, TX   (b)     234       459                   234       459       693       (193   2001   7/17/2013   11 to 28 Years
Church’s Chicken   Tucson, AZ   (b)     349       479                   349       479       828       (157   1976   7/17/2013   11 to 35 Years
Church’s Chicken   Phoenix, AZ   (b)     321       276                   321       276       597       (160   1975   7/17/2013   10 to 20 Years
Church’s Chicken   Decatur, GA   (b)     459       133                   459       133       592       (118   1974   7/17/2013   11 to 20 Years
 
12
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Church’s Chicken   Albuquerque, NM   (b)     466       591                   466       591       1,057       (203   1976   7/17/2013   11 to 35 Years
Church’s Chicken   Memphis, TN   (b)     128       232                   128       232       360       (131   1971   7/17/2013   8 to 20 Years
Church’s Chicken   Waco, TX   (b)     365       542                   365       542       907       (145   1969   7/17/2013   10 to 35 Years
Church’s Chicken   Bryan, TX   (b)     441       766                   441       766       1,207       (194   1972   7/17/2013   10 to 35 Years
Church’s Chicken   Grand Prairie, TX   (b)     335       527                   335       527       862       (169   1980   7/17/2013   10 to 35 Years
Church’s Chicken   Talladega, AL   (b)     247       245                   247       245       492       (197   1998   7/17/2013   11 to 21 Years
Church’s Chicken   Laredo, TX   (b)     272       713                   272       713       985       (185   1966   7/17/2013   11 to 35 Years
Church’s Chicken   Birmingham, AL   (b)     131       526                   131       526       657       (256   1984   7/17/2013   7 to 19 Years
Church’s Chicken   Jackson, MS   (b)     447       555                   447       555       1,002       (207   1998   7/17/2013   11 to 35 Years
Church’s Chicken   La Feria, TX   (b)     369       941                   369       941       1,310       (257   2003   7/17/2013   11 to 35 Years
Church’s Chicken   Port Isabel, TX   (b)     348       672                   348       672       1,020       (222   2004   7/17/2013   11 to 31 Years
Church’s Chicken   Hidalgo, TX   (b)     352       1,043                   352       1,043       1,395       (307   2001   7/17/2013   10 to 31 Years
Church’s Chicken   Weslaco, TX   (b)     860       513                   860       513       1,373       (157   1990   7/17/2013   11 to 35 Years
Church’s Chicken   Universal City, TX   (b)     408       369                   408       369       777       (182   1989   7/17/2013   9 to 25 Years
Church’s Chicken   Montgomery, AL   (b)     177       516                   177       516       693       (285   1984   7/17/2013   9 to 19 Years
Church’s Chicken   Atlanta, GA   (b)     683       5                   683       5       688       (106   1975   7/17/2013   11 to 23 Years
Church’s Chicken   Albuquerque, NM   (b)     293       300                   293       300       593       (192   1976   7/17/2013   11 to 25 Years
Church’s Chicken   Albuquerque, NM   (b)     267       439                   267       439       706       (226   1975   7/17/2013   11 to 25 Years
Church’s Chicken   Memphis, TN   (b)     206       471                   206       471       677       (194   1979   7/17/2013   10 to 25 Years
Church’s Chicken   Fort Valley, GA   (b)     353       379       (87           266       379       645       (208   1985   7/17/2013   11 to 23 Years
Church’s Chicken   Little Rock, AR   (b)     99       500                   99       500       599       (168   1970   7/17/2013   8 to 30 Years
Church’s Chicken   Austin, TX   (b)     418       872                   418       872       1,290       (236   1986   7/17/2013   11 to 35 Years
Church’s Chicken   Albuquerque, NM   (b)     265       575                   265       575       840       (262   1980   7/17/2013   11 to 26 Years
Church’s Chicken   Laredo, TX   (b)     727       698                   727       698       1,425       (191   1968   7/17/2013   11 to 35 Years
Church’s Chicken   Griffin, GA   (b)     215       492                   215       492       707       (212   1978   7/17/2013   11 to 25 Years
Church’s Chicken   San Antonio, TX   (b)     369       226                   369       226       595       (103   1986   7/17/2013   10 to 25 Years
Church’s Chicken   Odessa, TX   (b)     597       443                   597       443       1,040       (155   1979   7/17/2013   10 to 35 Years
Church’s Chicken   Memphis, TN   (b)     426       608                   426       608       1,034       (217   1971   7/17/2013   11 to 32 Years
Church’s Chicken   San Antonio, TX   (b)     395       414                   395       414       809       (186   1984   7/17/2013   11 to 25 Years
Church’s Chicken   Harlingen, TX   (b)     923       753                   923       753       1,676       (202   1985   7/17/2013   10 to 35 Years
Church’s Chicken   Weslaco, TX   (b)     291       786                   291       786       1,077       (289   1970   7/17/2013   11 to 25 Years
Church’s Chicken   Killeen, TX   (b)     289       513                   289       513       802       (157   1974   7/17/2013   9 to 35 Years
Church’s Chicken   The Village, OK   (b)     211       650                   211       650       861       (181   1978   7/17/2013   9 to 35 Years
Church’s Chicken   Gulfport, MS   (b)     540       429                   540       429       969       (122   1971   7/17/2013   11 to 35 Years
Church’s Chicken   Dallas, TX   (b)     392       501                   392       501       893       (182   1985   7/17/2013   11 to 30 Years
Church’s Chicken   Greensboro, AL   (b)     100       663                   100       663       763       (202   1986   7/17/2013   7 to 35 Years
Church’s Chicken   Beeville, TX   (b)     120       488                   120       488       608       (206   1972   7/17/2013   9 to 25 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Cinemark   Tucson, AZ   (b)     4,023       10,346             52       4,023       10,398       14,421       (1,270   2016   2/21/2017   15 to 50 Years
Circle K   Akron, OH   (b)     424       1,139                   424       1,139       1,563       (408   1995   7/17/2013   13 to 30 Years
Circle K   Cuyahoga Falls, OH   (b)     657       1,018                   657       1,018       1,675       (449   1995   7/17/2013   13 to 30 Years
Circle K   Cleveland, OH   (b)     804       1,513                   804       1,513       2,317       (514   2002   7/17/2013   13 to 35 Years
Circle K   Akron, OH   (b)     587       1,073                   587       1,073       1,660       (428   1998   7/17/2013   13 to 32 Years
Circle K   Augusta, GA   (b)     400       1,540                   400       1,540       1,940       (472   1981   7/17/2013   13 to 30 Years
Circle K   Auburn, AL   (b)     757       1,199                   757       1,199       1,956       (527   1990   7/17/2013   10 to 25 Years
Circle K   El Paso, TX   (b)     1,143       1,029                   1,143       1,029       2,172       (674   2000   7/17/2013   4 to 27 Years
Circle K   Fort Mill, SC   (b)     1,589       1,356                   1,589       1,356       2,945       (462   1999   7/17/2013   10 to 33 Years
Circle K   Mount Pleasant, SC   (b)     1,328       1,073                   1,328       1,073       2,401       (369   1978   7/17/2013   7 to 30 Years
Circle K   Goose Creek, SC   (b)     682       1,571                   682       1,571       2,253       (714   1983   7/17/2013   7 to 20 Years
Circle K   Akron, OH   (b)     500       2,058                   500       2,058       2,558       (603   1999   7/17/2013   15 to 33 Years
Circle K   Akron, OH   (b)     337       1,149                   337       1,149       1,486       (347   2001   7/17/2013   15 to 35 Years
Circle K   Parma, OH   (b)     437       1,166                   437       1,166       1,603       (346   2002   7/17/2013   15 to 35 Years
Circle K   Twinsburg, OH   (b)     556       1,317                   556       1,317       1,873       (415   2005   7/17/2013   15 to 37 Years
Circle K   Savannah, GA   (b)     1,001       847                   1,001       847       1,848       (445   1997   7/17/2013   8 to 37 Years
Circle K   Phenix City, AL   (b)     554       1,392                   554       1,392       1,946       (496   1999   7/17/2013   13 to 33 Years
Circle K   Macon, GA   (b)     470       1,226                   470       1,226       1,696       (529   1974   7/17/2013   7 to 35 Years
Circle K   Lanett, AL   (b)     299       844                   299       844       1,143       (341   1974   7/17/2013   10 to 25 Years
Circle K   Monroe, LA   (b)     517       1,455                   517       1,455       1,972       (645   1986   7/17/2013   6 to 28 Years
Circle K   Akron, OH   (b)     595       1,031                   595       1,031       1,626       (409   1995   7/17/2013   14 to 30 Years
Circle K   Akron, OH   (b)     554       824                   554       824       1,378       (295   1969   7/17/2013   14 to 38 Years
Circle K   Akron, OH   (b)     517       1,122                   517       1,122       1,639       (432   1994   7/17/2013   13 to 29 Years
Circle K   Barberton, OH   (b)     255       1,244                   255       1,244       1,499       (445   1991   7/17/2013   12 to 26 Years
Circle K   Charlotte, NC   (b)     1,442       789                   1,442       789       2,231       (442   1997   7/17/2013   8 to 35 Years
Circle K   Savannah, GA   (b)     831       869                   831       869       1,700       (368   1990   7/17/2013   14 to 30 Years
Circle K   Columbus, GA   (b)     574       1,039                   574       1,039       1,613       (354   1984   7/17/2013   13 to 32 Years
Circle K   Opelika, AL   (b)     960       1,716                   960       1,716       2,676       (787   1988   7/17/2013   10 to 25 Years
Circle K   Baton Rouge, LA   (b)     260       859                   260       859       1,119       (346   1976   7/17/2013   7 to 25 Years
Circle K   West Monroe, LA   (b)     686       981                   686       981       1,667       (723   1983   7/17/2013   5 to 25 Years
Circle K   Copley, OH   (b)     379       999                   379       999       1,378       (396   1993   7/17/2013   12 to 28 Years
Circle K   Akron, OH   (b)     283       1,160                   283       1,160       1,443       (365   1997   7/17/2013   14 to 32 Years
Circle K   Akron, OH   (b)     434       1,198                   434       1,198       1,632       (446   1994   7/17/2013   14 to 29 Years
Circle K   Huntersville, NC   (b)     1,539       924                   1,539       924       2,463       (578   1996   7/17/2013   8 to 35 Years
Circle K   Springdale, SC   (b)     794       767                   794       767       1,561       (291   1999   7/17/2013   13 to 33 Years
Circle K   Charleston, SC   (b)     1,547       1,242                   1,547       1,242       2,789       (677   1987   7/17/2013   7 to 20 Years
Circle K   Port Wentworth, GA   (b)     1,627       1,131                   1,627       1,131       2,758       (791   1991   7/17/2013   4 to 35 Years
 
1
31

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Circle K   Columbus, GA   (b)     867       2,299                   867       2,299       3,166       (741   1978   7/17/2013   13 to 30 Years
Circle K   Baton Rouge, LA   (b)     330       997                   330       997       1,327       (346   1970   7/17/2013   8 to 30 Years
Circle K   Cuyahoga Falls, OH   (b)     342       806                   342       806       1,148       (334   1972   7/17/2013   12 to 26 Years
Circle K   Akron, OH   (b)     343       1,193                   343       1,193       1,536       (397   1991   7/17/2013   15 to 31 Years
Circle K   Akron, OH   (b)     513       1,251                   513       1,251       1,764       (432   1996   7/17/2013   15 to 31 Years
Circle K   Bedford, OH   (b)     750       680                   750       680       1,430       (321   2000   7/17/2013   15 to 33 Years
Circle K   El Paso, TX   (b)     987       558                   987       558       1,545       (290   1999   7/17/2013   3 to 26 Years
Circle K   Valley, AL   (b)     754       804                   754       804       1,558       (359   1974   7/17/2013   9 to 25 Years
Circle K   Midland, GA   (b)     637       2,136                   637       2,136       2,773       (576   1995   7/17/2013   9 to 35 Years
Circle K   Columbus, GA   (b)     1,465       2,088                   1,465       2,088       3,553       (729   1995   7/17/2013   11 to 34 Years
Circle K   Baton Rouge, LA   (b)     481       913                   481       913       1,394       (374   1977   7/17/2013   8 to 30 Years
Circle K   Akron, OH   (b)     321       1,179                   321       1,179       1,500       (401   1994   7/17/2013   13 to 29 Years
Circle K   Barberton, OH   (b)     884       1,885                   884       1,885       2,769       (653   1981   7/17/2013   13 to 34 Years
Circle K   Norton, OH   (b)     581       1,460                   581       1,460       2,041       (478   1984   7/17/2013   13 to 35 Years
Circle K   Willoughby, OH   (b)     477       1,167                   477       1,167       1,644       (397   1986   7/17/2013   13 to 32 Years
Circle K   Columbia, SC   (b)     1,261       985                   1,261       985       2,246       (422   1993   7/17/2013   10 to 28 Years
Circle K   El Paso, TX   (b)     1,090       1,203                   1,090       1,203       2,293       (654   1999   7/17/2013   6 to 35 Years
Circle K   Martinez, GA   (b)     626       996                   626       996       1,622       (574   1985   7/17/2013   3 to 35 Years
Circle K   Pine Mountain, GA   (b)     454       1,627                   454       1,627       2,081       (518   1999   7/17/2013   10 to 37 Years
Circle K   Beaufort, SC   (b)     850       1,337                   850       1,337       2,187       (494   1997   7/17/2013   12 to 34 Years
Circle K   West Monroe, LA   (b)     425       1,558                   425       1,558       1,983       (618   1999   7/17/2013   3 to 35 Years
Circle K   Akron, OH   (b)     402       1,263                   402       1,263       1,665       (383   2000   7/17/2013   13 to 34 Years
Circle K   Akron, OH   (b)     291       1,230                   291       1,230       1,521       (467   1950   7/17/2013   12 to 25 Years
Circle K   Canton, OH   (b)     362       1,159                   362       1,159       1,521       (444   1990   7/17/2013   12 to 26 Years
Circle K   Maple Heights, OH   (b)     747       917                   747       917       1,664       (389   1998   7/17/2013   13 to 32 Years
Circle K   Brookpark, OH   (b)     623       978                   623       978       1,601       (374   1998   7/17/2013   13 to 32 Years
Circle K   Charlotte, NC   (b)     1,392       563                   1,392       563       1,955       (482   1991   7/17/2013   6 to 32 Years
Circle K   Mobile, AL   (b)     552       1,664                   552       1,664       2,216       (684   1987   7/17/2013   11 to 24 Years
Circle K   Bluffton, SC   (b)     1,531       645                   1,531       645       2,176       (344   1997   7/17/2013   10 to 32 Years
Circle K   Macon, GA   (b)     471       1,066                   471       1,066       1,537       (496   1993   7/17/2013   5 to 35 Years
Circle K   Mobile, AL   (b)     939       878                   939       878       1,817       (470   1988   7/17/2013   13 to 25 Years
Circle K   Shreveport, LA   (b)     369       1,183                   369       1,183       1,552       (463   1988   7/17/2013   4 to 25 Years
Circle K   Seville, OH   (b)     1,141       2,604                   1,141       2,604       3,745       (844   2003   7/17/2013   15 to 36 Years
Circle K   Barberton, OH   (b)     321       1,219                   321       1,219       1,540       (390   1983   7/17/2013   14 to 31 Years
Circle K   Fairlawn, OH   (b)     616       1,064                   616       1,064       1,680       (440   1993   7/17/2013   13 to 28 Years
Circle K   Northfield, OH   (b)     873       1,633                   873       1,633       2,506       (594   1983   7/17/2013   15 to 35 Years
Circle K   Columbus, GA   (b)     730       1,317                   730       1,317       2,047       (495   1978   7/17/2013   13 to 28 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Circle K   Albuquerque, NM   (b)     699       777                   699       777       1,476       (522   1994   7/17/2013   9 to 35 Years
Circle K   North Augusta, SC   (b)     1,065       894                   1,065       894       1,959       (318   1999   7/17/2013   12 to 33 Years
Circle K   Bossier City, LA   (b)     565       1,051       (21           544       1,051       1,595       (418   1987   7/17/2013   9 to 25 Years
City Electric Supply   Albany, GA   (b)     253       919                   253       919       1,172       (6   1975   11/30/2020   10 to 35 Years
City Electric Supply   Boynton Beach, FL   (b)     222       613                   222       613       835       (3   1963   11/30/2020   10 to 40 Years
City Electric Supply   Brunswick, GA   (b)     282       1,019                   282       1,019       1,301       (6   1991   11/30/2020   10 to 35 Years
City Electric Supply   Calhoun, GA   (b)     779       462                   779       462       1,241       (3   1994   11/30/2020   10 to 35 Years
City Electric Supply   Alcoa, TN   (b)     264       790                   264       790       1,054       (5   1955   11/30/2020   10 to 35 Years
City Electric Supply   Conway, SC   (b)     224       1,102                   224       1,102       1,326       (3   2008   11/30/2020   11 to 41 Years
City Electric Supply   Fernandina Beach, FL   (b)     352       868                   352       868       1,220       (5   1976   11/30/2020   10 to 40 Years
City Electric Supply   Franklin, NC   (b)     301       1,352                   301       1,352       1,653       (9   2001   11/30/2020   10 to 36 Years
City Electric Supply   Kenwood Estates, FL   (b)     359       695                   359       695       1,054       (4   1995   11/30/2020   10 to 40 Years
City Electric Supply   Doral, FL   (b)     163       604                   163       604       767       (1   1983   11/30/2020   10 to 35 Years
City Electric Supply   Marble Falls, TX   (b)     383       1,682                   383       1,682       2,065       (9   2007   11/30/2020   10 to 40 Years
City Electric Supply   Chattanooga, TN   (b)     150       1,241                   150       1,241       1,391       (3   1957   11/30/2020   10 to 40 Years
City Electric Supply   Greenville, SC   (b)     754       1,178                   754       1,178       1,932       (4   1955   11/30/2020   10 to 35 Years
City Electric Supply   Griffin, GA   (b)     595       955                   595       955       1,550       (7   2004   11/30/2020   12 to 42 Years
City Electric Supply   Jacksonville Beach, FL   (b)     184       642                   184       642       826       (4   1999   11/30/2020   10 to 35 Years
City Electric Supply   Jacksonville, FL   (b)     239       691                   239       691       930       (4   1995   11/30/2020   10 to 35 Years
City Electric Supply   Lake City, FL   (b)     237       598                   237       598       835       (4   1986   11/30/2020   10 to 35 Years
City Electric Supply   Greeley, CO   (b)     66       832                   66       832       898       (2   1999   11/30/2020   41 to 41 Years
City Electric Supply   Lancaster, SC   (b)     755       756                   755       756       1,511       (5   1978   11/30/2020   5 to 35 Years
City Electric Supply   Lawrenceville, GA   (b)     430       1,098                   430       1,098       1,528       (7   2001   11/30/2020   10 to 42 Years
City Electric Supply   Lexington, SC   (b)     570       2,077                   570       2,077       2,647       (8   1992   11/30/2020   10 to 35 Years
City Electric Supply   Cumberland, MD   (b)     414       1,076                   414       1,076       1,490       (5   1935   11/30/2020   10 to 40 Years
City Electric Supply   Brandon, FL   (b)     212       842                   212       842       1,054       (5   1985   11/30/2020   10 to 35 Years
City Electric Supply   Mesa, AZ   (b)     84       1,341                   84       1,341       1,425       (2   2005   11/30/2020   45 to 45 Years
City Electric Supply   Kannapolis, NC   (b)     254       2,795                   254       2,795       3,049       (12   1942   11/30/2020   10 to 40 Years
City Electric Supply   Clearwater, FL   (b)     322       401                   322       401       723       (2   1987   11/30/2020   10 to 35 Years
City Electric Supply   Clermont, FL   (b)     160       921                   160       921       1,081       (2   1997   11/30/2020   35 to 35 Years
City Electric Supply   Milton, FL   (b)     511       524                   511       524       1,035       (3   2014   11/30/2020   13 to 43 Years
City Electric Supply   Lincolnton, NC   (b)     882       1,102                   882       1,102       1,984       (8   2001   11/30/2020   10 to 36 Years
City Electric Supply   West Deland, FL   (b)     376       761                   376       761       1,137       (5   1988   11/30/2020   10 to 35 Years
City Electric Supply   Derry, NH   (b)     110       921                   110       921       1,031       (2   2007   11/30/2020   40 to 40 Years
City Electric Supply   Phoenix, AZ   (b)     79       899                   79       899       978       (2   2004   11/30/2020   45 to 45 Years
City Electric Supply   Moultrie, GA   (b)     339       591                   339       591       930       (5   1997   11/30/2020   10 to 35 Years
City Electric Supply   Myrtle Beach, SC   (b)     357       1,636                   357       1,636       1,993       (4   1977   11/30/2020   10 to 37 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
City Electric Supply   Palatka, FL   (b)     377       399                   377       399       776       (3   1995   11/30/2020   10 to 35 Years
City Electric Supply   Lynwood, IL   (b)     181       1,059                   181       1,059       1,240       (6   2000   11/30/2020   10 to 42 Years
City Electric Supply   Monroe, NC   (b)     323       1,744                   323       1,744       2,067       (9   1996   11/30/2020   11 to 41 Years
City Electric Supply   Okeechobee, FL   (b)     234       386                   234       386       620       (3   1981   11/30/2020   10 to 35 Years
City Electric Supply   Palm Bay, FL   (b)     460       687                   460       687       1,147       (3   2000   11/30/2020   10 to 35 Years
City Electric Supply   Port St Lucie, FL   (b)     397       708                   397       708       1,105       (5   1997   11/30/2020   10 to 40 Years
City Electric Supply   Salisbury, NC   (b)     440       799                   440       799       1,239       (5   2012   11/30/2020   12 to 42 Years
City Electric Supply   Rock Hill, SC   (b)     316       1,254                   316       1,254       1,570       (8   2009   11/30/2020   11 to 41 Years
City Electric Supply   New Bern, NC   (b)     300       2,017                   300       2,017       2,317       (10   1962   11/30/2020   10 to 40 Years
City Electric Supply   Rome, GA   (b)     706       1,375                   706       1,375       2,081       (5   2002   11/30/2020   10 to 37 Years
City Electric Supply   Rockledge, FL   (b)     319       405                   319       405       724       (3   1992   11/30/2020   10 to 35 Years
City Electric Supply   Garden City, GA   (b)     412       949                   412       949       1,361       (6   1986   11/30/2020   10 to 35 Years
City Electric Supply   Spartanburg, SC   (b)     324       916                   324       916       1,240       (6   1986   11/30/2020   10 to 35 Years
City Electric Supply   Port Orange, FL   (b)     318       818                   318       818       1,136       (5   1990   11/30/2020   10 to 35 Years
City Electric Supply   Summerfield, FL   (b)     414       249                   414       249       663       (2   2005   11/30/2020   10 to 39 Years
City Electric Supply   Stuart, FL   (b)     243       519                   243       519       762       (3   1966   11/30/2020   10 to 40 Years
City Electric Supply   Eastanollee, GA   (b)     441       807                   441       807       1,248       (3   2001   11/30/2020   10 to 37 Years
City Electric Supply   Tampa, FL   (b)     226       836                   226       836       1,062       (4   1982   11/30/2020   10 to 40 Years
City Electric Supply   Titusville, FL   (b)     122       705                   122       705       827       (3   1978   11/30/2020   10 to 40 Years
City Electric Supply   Walterboro, SC   (b)     191       812                   191       812       1,003       (4   1957   11/30/2020   10 to 40 Years
City Electric Supply   Warner Robins, GA   (b)     418       822                   418       822       1,240       (6   2003   11/30/2020   10 to 43 Years
City Electric Supply   Waycross, GA   (b)     558       445                   558       445       1,003       (2   1998   11/30/2020   10 to 35 Years
City Electric Supply   West Palm Beach, FL   (b)     213       404                   213       404       617       (1   1962   11/30/2020   10 to 40 Years
City Electric Supply   Winston Salem, NC   (b)     839       1,309                   839       1,309       2,148       (4   1961   11/30/2020   10 to 40 Years
City Electric Supply   Valdosta, GA   (b)     147       886                   147       886       1,033       (4   2013   11/30/2020   13 to 48 Years
City Electric Supply   Beaufort, SC   (b)     326       717                   326       717       1,043       (2   2017   11/30/2020   10 to 40 Years
City Electric Supply   Jupiter, FL   (b)     369       664                   369       664       1,033       (3   1967   11/30/2020   10 to 40 Years
City Electric Supply   Fort Myers, FL   (b)     707       2,730                   707       2,730       3,437       (17   1998   11/30/2020   10 to 35 Years
City Electric Supply   Gainesville, FL   (b)     354       796                   354       796       1,150       (5   1971   11/30/2020   10 to 35 Years
City Electric Supply   Concord, NC   (b)     263       1,455                   263       1,455       1,718       (8   2006   11/30/2020   10 to 39 Years
City Electric Supply   Denver, CO   (b)     568       1,139                   568       1,139       1,707       (5   1967   11/30/2020   10 to 40 Years
City Electric Supply   Loganville, GA   (b)     684       558                   684       558       1,242       (4   2017   11/30/2020   14 to 44 Years
City Electric Supply   Pascagoula, MS   (b)     635       1,855                   635       1,855       2,490       (14   1967   11/30/2020   10 to 35 Years
City Electric Supply   South Sumter, SC   (b)     522       409                   522       409       931       (3   2015   11/30/2020   13 to 43 Years
City Electric Supply   Miami, FL   (b)     330       437                   330       437       767       (1   2008   11/30/2020   12 to 47 Years
City Electric Supply   West Columbia, SC   (b)     552       895                   552       895       1,447       (5   2015   11/30/2020   13 to 43 Years
City Electric Supply   Raleigh, NC   (b)     382       974                   382       974       1,356       (5   1992   11/30/2020   13 to 40 Years
 
13
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
City Electric Supply   Sebring, FL   (b)     235       1,996                   235       1,996       2,231       (10   2003   11/30/2020   10 to 38 Years
City Electric Supply   Altamonte Springs, FL   (b)     580       1,953                   580       1,953       2,533       (11   1989   11/30/2020   10 to 40 Years
City Electric Supply   Ocala, FL   (b)     480       2,412                   480       2,412       2,892       (14   2001   11/30/2020   10 to 36 Years
Clean Freak   Phoenix, AZ   (b)     1,143       439                   1,143       439       1,582       (139   1970   9/29/2016   21 to 30 Years
Clean Freak   Phoenix, AZ   (b)     2,066       1,581                   2,066       1,581       3,647       (376   2009   9/29/2016   21 to 30 Years
Clean Freak   Glendale, AZ   (b)     1,524       854                   1,524       854       2,378       (264   1988   9/29/2016   21 to 30 Years
Clean Freak   Phoenix, AZ   (b)     1,835       2,332             54       1,835       2,386       4,221       (487   1974   9/29/2016   21 to 30 Years
Clean Freak   Chandler, AZ   (b)     1,293       1,951                   1,293       1,951       3,244       (393   2006   9/29/2016   21 to 30 Years
Clean Freak   Springfield, IL   (b)     548       1,008                   548       1,008       1,556       (40   2016   1/16/2020   15 to 37 Years
Clean Freak   Normal, IL   (b)     1,141       2,072                   1,141       2,072       3,213       (74   2016   1/16/2020   15 to 37 Years
Clean Freak   Champaign, IL   (b)     1,886       3,356                   1,886       3,356       5,242       (123   2015   1/16/2020   15 to 37 Years
Columbus Fish Market   Grandview, OH   (b)     2,164       1,165                   2,164       1,165       3,329       (667   1960   7/17/2013   9 to 23 Years
Conney Safety   Madison, WI   (b)     1,189       11,451                   1,189       11,451       12,640       (479   1986   1/9/2020   9 to 28 Years
Convergys   Las Cruces, NM   (b)     808       6,045                   808       6,045       6,853       (1,337   2008   7/17/2013   4 to 52 Years
Cost-U-Less   St. Croix, VI   (b)     2,132       5,992                   2,132       5,992       8,124       (1,683   2005   7/17/2013   8 to 37 Years
CoxHealth   Springfield, MO   (b)     2,025       3,911                   2,025       3,911       5,936       (1,265   1990   9/23/2014   7 to 30 Years
Crème de la Crème   Duluth, GA   (b)     1,872       3,338             13       1,872       3,351       5,223       (128   2007   11/25/2019   7 to 41 Years
Crème de la Crème   Romeoville, IL   (b)     2,239       3,748             12       2,239       3,760       5,999       (188   2008   11/25/2019   7 to 36 Years
Crème de la Crème   Mount Laurel, NJ   (b)     2,378       4,433             12       2,378       4,445       6,823       (183   2007   11/25/2019   7 to 39 Years
Crème de la Crème   Barrington, IL   (b)     1,729       2,474             12       1,729       2,486       4,215       (111   2008   11/25/2019   14 to 38 Years
Crème de la Crème   Chicago, IL   (b)     2,320       4,962             12       2,320       4,974       7,294       (170   2009   11/25/2019   12 to 38 Years
Crunch Fitness   Aurora, IL   (b)     668       2,615             23       668       2,638       3,306       (496   2006   11/29/2016   9 to 30 Years
Crunch Fitness   Lawrenceville, GA   (b)     2,330       2,604             13       2,330       2,617       4,947       (124   2017   11/25/2019   10 to 44 Years
Crunch Fitness   Boise, ID   (b)     823       3,178             545       823       3,723       4,546       (452   2003   12/28/2016   10 to 40 Years
Crunch Fitness   Meridian, ID   (b)     840       2,950             1,028       840       3,978       4,818       (550   1993   12/28/2016   8 to 30 Years
Crunch Fitness   Eagle, ID   (b)     1,428       5,591             866       1,428       6,457       7,885       (995   1999   12/28/2016   10 to 30 Years
Crunch Fitness   Boise, ID   (b)     1,335       4,982             561       1,335       5,543       6,878       (881   2001   12/28/2016   8 to 30 Years
C-Store   Charlotte, MI   (b)     224       157                   224       157       381       (75   1968   5/19/2016   17 to 30 Years
C-Store   Jackson, MI   (b)     908       1,132                   908       1,132       2,040       (310   1969   5/19/2016   21 to 30 Years
C-Store   Alma, MI   (b)     235       437                   235       437       672       (109   2006   5/19/2016   17 to 30 Years
C-Store   Scottville, MI   (b)     235       404                   235       404       639       (119   1959   5/19/2016   17 to 30 Years
C-Store   Allegan, MI   (b)     392       224                   392       224       616       (113   1965   5/19/2016   17 to 30 Years
C-Store   Edmore, MI   (b)     729       774                   729       774       1,503       (255   1999   5/19/2016   17 to 40 Years
C-Store   Wyoming, MI   (b)     314       448                   314       448       762       (111   1958   5/19/2016   17 to 30 Years
C-Store   Hastings, MI   (b)     392       437             190       392       627       1,019       (165   1964   5/19/2016   17 to 30 Years
C-Store   Plainwell, MI   (b)     785       235                   785       235       1,020       (163   1998   5/19/2016   17 to 30 Years
C-Store   Ithaca, MI   (b)     538       381                   538       381       919       (152   1994   5/19/2016   17 to 30 Years
 
13
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Midland, MI   (b)     191       67                   191       67       258       (47   1962   5/19/2016   17 to 30 Years
C-Store   Indianapolis, IN   (b)     426       191                   426       191       617       (90   1973   5/19/2016   17 to 30 Years
C-Store   Traverse City, MI   (b)     482       179                   482       179       661       (70   1971   5/19/2016   17 to 30 Years
C-Store   Burton, MI   (b)     336       1,323                   336       1,323       1,659       (260   1969   5/19/2016   17 to 30 Years
C-Store   Holland, MI   (b)     235       325                   235       325       560       (89   1957   5/19/2016   17 to 30 Years
C-Store   Norton Shores, MI   (b)     325       291                   325       291       616       (114   1962   5/19/2016   17 to 30 Years
C-Store   Rushville, IN   (b)     179       112                   179       112       291       (50   1978   5/19/2016   17 to 30 Years
C-Store   Coldwater, MI   (b)     258       135                   258       135       393       (66   1960   5/19/2016   17 to 30 Years
C-Store   Fremont, MI   (b)     269       269                   269       269       538       (99   1971   5/19/2016   17 to 30 Years
C-Store   Marquette, MI   (b)     404       146                   404       146       550       (68   1968   5/19/2016   17 to 30 Years
C-Store   St Johns, MI   (b)     460       706       (122     (155     338       551       889       (24   2011   5/19/2016   12 to 25 Years
C-Store   Mason, MI   (b)     258       157                   258       157       415       (78   1971   5/19/2016   17 to 30 Years
C-Store   Freeland, MI   (b)     336       437                   336       437       773       (127   1962   5/19/2016   17 to 30 Years
C-Store   Menominee, MI   (b)     235       179                   235       179       414       (73   1966   5/19/2016   17 to 30 Years
C-Store   Merrillville, IN   (b)     303       247                   303       247       550       (95   1973   5/19/2016   17 to 30 Years
C-Store   Eaton Rapids, MI   (b)     291       448                   291       448       739       (135   1945   5/19/2016   17 to 30 Years
C-Store   Muncie, IN   (b)     448       135                   448       135       583       (90   1983   5/19/2016   17 to 30 Years
C-Store   Indianapolis, IN   (b)     325       157                   325       157       482       (66   1945   5/19/2016   17 to 30 Years
C-Store   Jackson, MI   (b)     684       1,188                   684       1,188       1,872       (290   1963   5/19/2016   17 to 30 Years
C-Store   Grayling, MI   (b)     2,052       549                   2,052       549       2,601       (296   1988   5/19/2016   17 to 30 Years
C-Store   Alpena, MI   (b)     471       561                   471       561       1,032       (140   1999   5/19/2016   17 to 40 Years
C-Store   Midland, MI   (b)     314       135                   314       135       449       (75   1960   5/19/2016   17 to 30 Years
C-Store   Stevensville, MI   (b)     482       191                   482       191       673       (120   1960   5/19/2016   17 to 30 Years
C-Store   Alpena, MI   (b)     392       336                   392       336       728       (108   1998   5/19/2016   17 to 40 Years
C-Store   Greenville, MI   (b)     437       628             194       437       822       1,259       (174   1968   5/19/2016   17 to 30 Years
C-Store   Lansing, MI   (b)     269       179                   269       179       448       (79   1965   5/19/2016   17 to 30 Years
C-Store   Swartz Creek, MI   (b)     213       460                   213       460       673       (113   1952   5/19/2016   17 to 30 Years
C-Store   Spring Lake, MI   (b)     247       325             190       247       515       762       (124   1964   5/19/2016   17 to 30 Years
C-Store   Sault Ste Marie, MI   (b)     1,760       561                   1,760       561       2,321       (267   1993   5/19/2016   17 to 30 Years
C-Store   Coopersville, MI   (b)     998       572                   998       572       1,570       (205   1968   5/19/2016   17 to 30 Years
C-Store   Cedar Springs, MI   (b)     191       348                   191       348       539       (89   1965   5/19/2016   17 to 30 Years
C-Store   Saginaw, MI   (b)     1,177       594                   1,177       594       1,771       (236   1989   5/19/2016   17 to 30 Years
C-Store   Saginaw, MI   (b)     359       191                   359       191       550       (65   1969   5/19/2016   17 to 30 Years
C-Store   Three Rivers, MI   (b)     1,256       1,401                   1,256       1,401       2,657       (386   1982   5/19/2016   20 to 30 Years
C-Store   Saginaw, MI   (b)     224       135                   224       135       359       (63   1960   5/19/2016   17 to 30 Years
C-Store   Grand Haven, MI   (b)     661       628                   661       628       1,289       (184   1992   5/19/2016   17 to 30 Years
C-Store   Jackson, MI   (b)     247       179                   247       179       426       (82   1965   5/19/2016   17 to 30 Years
 
13
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Hillsdale, MI   (b)     325       157                   325       157       482       (72   1968   5/19/2016   17 to 30 Years
C-Store   Muskegon, MI   (b)     291       471                   291       471       762       (138   1964   5/19/2016   17 to 30 Years
C-Store   Zeeland, MI   (b)     213       426                   213       426       639       (101   1989   5/19/2016   17 to 30 Years
C-Store   Sparta, MI   (b)     291       650                   291       650       941       (154   1993   5/19/2016   17 to 30 Years
C-Store   Lansing, MI   (b)     336       168                   336       168       504       (95   1978   5/19/2016   17 to 30 Years
C-Store   Muskegon, MI   (b)     605       650                   605       650       1,255       (190   1959   5/19/2016   17 to 30 Years
C-Store   Cadillac, MI   (b)     370       404                   370       404       774       (125   1971   5/19/2016   17 to 30 Years
C-Store   Cynthiana, KY   (b)     119       596                   119       596       715       (135   1985   6/30/2015   15 to 30 Years
C-Store   Carlisle, KY   (b)     209       586                   209       586       795       (148   1989   6/30/2015   15 to 30 Years
C-Store   Georgetown, KY   (b)     815       934                   815       934       1,749       (255   1998   6/30/2015   15 to 30 Years
C-Store   Clay City, KY   (b)     397       884                   397       884       1,281       (264   2002   6/30/2015   15 to 30 Years
C-Store   Winchester, KY   (b)     755       775                   755       775       1,530       (229   1981   6/30/2015   15 to 30 Years
C-Store   Paris, KY   (b)     209       576                   209       576       785       (146   1992   6/30/2015   15 to 30 Years
C-Store   Georgetown, KY   (b)     725       805                   725       805       1,530       (228   1989   6/30/2015   15 to 30 Years
C-Store   Mount Sterling, KY   (b)     1,103       1,103                   1,103       1,103       2,206       (330   2000   6/30/2015   15 to 30 Years
C-Store   Irvine, KY   (b)     219       666                   219       666       885       (177   1987   6/30/2015   15 to 30 Years
C-Store   McKee, KY   (b)     119       973                   119       973       1,092       (200   1983   6/30/2015   15 to 30 Years
C-Store   Hazard, KY   (b)     288       805                   288       805       1,093       (191   1991   6/30/2015   15 to 30 Years
C-Store   Campton, KY   (b)     189       735                   189       735       924       (171   1996   6/30/2015   15 to 30 Years
C-Store   Flemingsburg, KY   (b)     1,073       1,212                   1,073       1,212       2,285       (353   1997   6/30/2015   15 to 30 Years
C-Store   Jackson, KY   (b)     417       765                   417       765       1,182       (195   1982   6/30/2015   15 to 30 Years
C-Store   Paris, KY   (b)     129       636                   129       636       765       (142   1988   6/30/2015   15 to 30 Years
C-Store   Carlisle, KY   (b)     298       874                   298       874       1,172       (222   2005   6/30/2015   15 to 30 Years
C-Store   Beattyville, KY   (b)     278       795                   278       795       1,073       (186   1981   6/30/2015   15 to 30 Years
C-Store   Harrodsburg, KY   (b)     228       824                   228       824       1,052       (195   1973   6/30/2015   15 to 30 Years
C-Store   Moneta, VA   (b)     437       934                   437       934       1,371       (259   1999   6/30/2015   15 to 30 Years
C-Store   South Boston, VA   (b)     407       834                   407       834       1,241       (197   1983   6/30/2015   15 to 30 Years
C-Store   Rustburg, VA   (b)     526       775                   526       775       1,301       (233   1990   6/30/2015   15 to 30 Years
C-Store   Roanoke, VA   (b)     616       534                   616       534       1,150       (167   1988   6/30/2015   15 to 30 Years
C-Store   South Boston, VA   (b)     894       1,232                   894       1,232       2,126       (324   1997   6/30/2015   15 to 30 Years
C-Store   Lynchburg, VA   (b)     467       1,391                   467       1,391       1,858       (313   2006   6/30/2015   15 to 30 Years
C-Store   Gretna, VA   (b)     268       798                   268       798       1,066       (205   1978   6/30/2015   15 to 30 Years
C-Store   Gretna, VA   (b)     159       1,083                   159       1,083       1,242       (239   1996   6/30/2015   15 to 30 Years
C-Store   South Boston, VA   (b)     368       517                   368       517       885       (157   1997   6/30/2015   15 to 30 Years
C-Store   Roanoke, VA   (b)     238       497                   238       497       735       (117   1988   6/30/2015   15 to 30 Years
C-Store   Madison Heights, VA   (b)     268       417                   268       417       685       (113   1983   6/30/2015   15 to 30 Years
C-Store   Lynchburg, VA   (b)     517       1,142                   517       1,142       1,659       (282   2000   6/30/2015   15 to 30 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   South Boston, VA   (b)     377       705                   377       705       1,082       (166   1988   6/30/2015   15 to 30 Years
C-Store   Blairs, VA   (b)     318       636                   318       636       954       (153   1987   6/30/2015   15 to 30 Years
C-Store   Daleville, VA   (b)     467       616                   467       616       1,083       (175   1989   6/30/2015   15 to 30 Years
C-Store   Hurt, VA   (b)     685       1,023                   685       1,023       1,708       (293   1973   6/30/2015   15 to 30 Years
C-Store   Bedford, VA   (b)     258       818                   258       818       1,076       (194   1997   6/30/2015   15 to 30 Years
C-Store   Salem, VA   (b)     209       576                   209       576       785       (146   1970   6/30/2015   15 to 30 Years
C-Store   Roanoke, VA   (b)     397       685                   397       685       1,082       (180   1997   6/30/2015   15 to 30 Years
C-Store   Forest, VA   (b)     248       834                   248       834       1,082       (197   1995   6/30/2015   15 to 30 Years
C-Store   Danville, VA   (b)     348       477                   348       477       825       (135   1989   6/30/2015   15 to 30 Years
C-Store   Altavista, VA   (b)     358       1,401                   358       1,401       1,759       (308   1981   6/30/2015   15 to 30 Years
C-Store   Roanoke, VA   (b)     397       785                   397       785       1,182       (198   1986   6/30/2015   15 to 30 Years
C-Store   Salem, VA   (b)     387       1,172                   387       1,172       1,559       (273   1973   6/30/2015   15 to 30 Years
C-Store   Salem, VA   (b)     646       517                   646       517       1,163       (160   1987   6/30/2015   15 to 30 Years
C-Store   Altavista, VA   (b)     467       745                   467       745       1,212       (198   1984   6/30/2015   15 to 30 Years
C-Store   Jacksonville, FL   (b)     2,285       1,537             50       2,285       1,587       3,872       (705   2010   10/28/2015   15 to 40 Years
C-Store   Apopka, FL   (b)     1,357       748             55       1,357       803       2,160       (439   1997   10/28/2015   15 to 30 Years
C-Store   Belle Isle, FL   (b)     908       738             168       908       906       1,814       (299   1996   10/27/2015   15 to 30 Years
C-Store   Orlando, FL   (b)     1,397       1,028             127       1,397       1,155       2,552       (489   1990   10/29/2015   15 to 30 Years
C-Store   Okeechobee, FL   (b)     468       936                   468       936       1,404       (249   1976   10/30/2014   15 to 40 Years
C-Store   Fort Pierce, FL   (b)     681       1,404                   681       1,404       2,085       (356   1989   10/30/2014   15 to 40 Years
C-Store   Okeechobee, FL   (b)     808       1,191                   808       1,191       1,999       (367   1984   10/30/2014   15 to 40 Years
C-Store   Fort Pierce, FL   (b)     1,064       1,659                   1,064       1,659       2,723       (466   1977   10/30/2014   15 to 40 Years
C-Store   Okeechobee, FL   (b)     386       1,764                   386       1,764       2,150       (366   1975   10/30/2014   15 to 40 Years
C-Store   Okeechobee, FL   (b)     558       1,024                   558       1,024       1,582       (265   1986   10/30/2014   15 to 40 Years
C-Store   Belle Glade, FL   (b)     978       1,184                   978       1,184       2,162       (288   1960   10/30/2014   15 to 40 Years
C-Store   Yarmouth, ME   (b)     950       278                   950       278       1,228       (186   1990   1/24/2014   14 to 40 Years
C-Store   Waldoboro, ME   (b)     1,450       834                   1,450       834       2,284       (372   1996   1/24/2014   14 to 40 Years
C-Store   Wiscasset, ME   (b)     1,305       538                   1,305       538       1,843       (380   1992   1/24/2014   14 to 30 Years
C-Store   South Portland, ME   (b)     448       593                   448       593       1,041       (193   1970   1/24/2014   14 to 40 Years
C-Store   Hampden, ME   (b)     987       424                   987       424       1,411       (328   1997   1/24/2014   14 to 30 Years
C-Store   Presque Isle, ME   (b)     708       390                   708       390       1,098       (255   1995   1/24/2014   14 to 30 Years
C-Store   Bucksport, ME   (b)     1,203       587                   1,203       587       1,790       (248   1995   1/24/2014   14 to 40 Years
C-Store   Belmont, NH   (b)     315       218                   315       218       533       (107   1969   1/24/2014   14 to 30 Years
C-Store   Laconia, NH   (b)     411       770                   411       770       1,181       (278   1998   1/24/2014   14 to 30 Years
C-Store   Raymond, NH   (b)     1,722       430                   1,722       430       2,152       (379   1986   1/24/2014   14 to 20 Years
C-Store   Grandtham, NH   (b)     576       394                   576       394       970       (190   1989   1/24/2014   14 to 30 Years
C-Store   Belmont, NH   (b)     524       879                   524       879       1,403       (341   2002   1/24/2014   14 to 30 Years
 
13
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Keene, NH   (b)     553       289                   553       289       842       (142   1960   1/24/2014   14 to 30 Years
C-Store   Barton, VT   (b)     307       609                   307       609       916       (164   1975   1/24/2014   14 to 40 Years
C-Store   Sherman Mills, ME   (b)     259       163                   259       163       422       (120   1974   6/28/2012   15 to 20 Years
C-Store   Bangor, ME   (b)     327       141                   327       141       468       (141   1973   6/28/2012   15 to 15 Years
C-Store   Calais, ME   (b)     187       213                   187       213       400       (128   1968   6/28/2012   15 to 20 Years
C-Store   Brewer, ME   (b)     238       260                   238       260       498       (138   1967   6/28/2012   15 to 25 Years
C-Store   Harrington, ME   (b)     331       459                   331       459       790       (213   1992   6/28/2012   15 to 32 Years
C-Store   Lewiston, ME   (b)     460       341                   460       341       801       (183   1994   6/28/2012   15 to 28 Years
C-Store   Rockland, ME   (b)     211       303                   211       303       514       (126   1984   6/28/2012   15 to 28 Years
C-Store   Oakfield, ME   (b)     273       229                   273       229       502       (147   1993   6/28/2012   15 to 25 Years
C-Store   Ashland, NH   (b)     398       157                   398       157       555       (100   1970   6/28/2012   15 to 20 Years
C-Store   Berlin, NH   (b)     387       317                   387       317       704       (183   1991   6/28/2012   15 to 22 Years
C-Store   Paris, ME   (b)     139       153                   139       153       292       (104   1954   6/28/2012   15 to 17 Years
C-Store   Madison, ME   (b)     130       410                   130       410       540       (168   1988   6/28/2012   15 to 25 Years
C-Store   Bartlett, NH   (b)     325       399                   325       399       724       (160   1998   6/28/2012   15 to 32 Years
C-Store   Auburn, ME   (b)     371       444                   371       444       815       (177   1996   6/28/2012   15 to 30 Years
C-Store   Auburn, ME   (b)     287       222                   287       222       509       (127   1968   6/28/2012   15 to 20 Years
C-Store   South Portland, ME   (b)     661       194                   661       194       855       (173   1970   6/28/2012   15 to 15 Years
C-Store   Freeport, ME   (b)     503       343                   503       343       846       (159   1991   6/28/2012   15 to 26 Years
C-Store   Sanford, ME   (b)     807       579                   807       579       1,386       (230   1997   6/28/2012   15 to 28 Years
C-Store   Gorham, NH   (b)     723       358                   723       358       1,081       (239   1975   6/28/2012   15 to 18 Years
C-Store   Manchester, ME   (b)     279       285                   279       285       564       (166   1990   6/28/2012   15 to 20 Years
C-Store   Augusta, ME   (b)     318       322                   318       322       640       (131   1997   6/28/2012   15 to 28 Years
C-Store   Concord, NH   (b)     260       330                   260       330       590       (147   1988   6/28/2012   15 to 25 Years
C-Store   Newport, NH   (b)     519       581                   519       581       1,100       (249   1998   6/28/2012   15 to 30 Years
C-Store   Youngstown, FL   (b)     1,449       1,763             33       1,449       1,796       3,245       (523   1999   4/26/2017   15 to 30 Years
C-Store   Roebuck, SC   (b)     708       818             150       708       968       1,676       (502   1992   1/1/2014   8 to 29 Years
C-Store   Honea Path, SC   (b)     1,269       1,134       (1     174       1,268       1,308       2,576       (765   1996   1/1/2014   8 to 29 Years
C-Store   Laurens, SC   (b)     504       622       1       116       505       738       1,243       (371   1992   1/1/2014   8 to 29 Years
C-Store   Asheville, NC   (b)     278       776             167       278       943       1,221       (375   2000   1/1/2014   8 to 29 Years
C-Store   Inman, SC   (b)     2,183       897             163       2,183       1,060       3,243       (1,100   1994   5/8/2013   8 to 29 Years
C-Store   Summerville, SC   (b)     1,317       1,459       (151     206       1,166       1,665       2,831       (644   2001   5/8/2013   8 to 29 Years
C-Store   Murphy, NC   (b)     489       297             50       489       347       836       (196   1965   5/8/2013   8 to 19 Years
C-Store   Asheville, NC   (b)     247       497             86       247       583       830       (253   1986   1/1/2014   8 to 29 Years
C-Store   Harriman, TN   (b)     400                         400             400           (e)   6/28/2019   (e)
C-Store   Maynardville, TN   (b)     830                         830             830           (e)   6/28/2019   (e)
C-Store   Athens, TN   (b)     1,140                         1,140             1,140           (e)   6/28/2019   (e)
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Vonore, TN   (b)     930                         930             930           (e)   6/28/2019   (e)
C-Store   Loudon, TN   (b)     1,283                         1,283             1,283           (e)   6/28/2019   (e)
C-Store   Wartburg, TN   (b)     520                         520             520           (e)   6/28/2019   (e)
C-Store   Kingston, TN   (b)     483                         483             483           (e)   6/28/2019   (e)
C-Store   Harriman, TN   (b)     709                         709             709           (e)   6/28/2019   (e)
C-Store   Dandridge, TN   (b)     959                         959             959           (e)   6/28/2019   (e)
C-Store   Rockwood, TN   (b)     358                         358             358           (e)   6/28/2019   (e)
C-Store   Jellico, TN   (b)     1,874                         1,874             1,874           (e)   6/28/2019   (e)
C-Store   Cleveland, TN   (b)     359                         359             359           (e)   6/28/2019   (e)
C-Store   Spring City, TN   (b)     1,634                         1,634             1,634           (e)   6/28/2019   (e)
C-Store   Cleveland, TN   (b)     1,228                         1,228             1,228           (e)   6/28/2019   (e)
C-Store   Powell, TN   (b)     868                         868             868           (e)   6/28/2019   (e)
C-Store   Oak Ridge, TN   (b)     1,807                         1,807             1,807           (e)   6/28/2019   (e)
C-Store   Jellico, TN   (b)     1,148                         1,148             1,148           (e)   6/28/2019   (e)
C-Store   Clinton, TN   (b)     868                         868             868           (e)   6/28/2019   (e)
C-Store   Clinton, TN   (b)     939                         939             939           (e)   6/28/2019   (e)
C-Store   Harriman, TN   (b)     1,048                         1,048             1,048           (e)   6/28/2019   (e)
C-Store   Athens, TN   (b)     620                         620             620           (e)   6/28/2019   (e)
C-Store   Harriman, TN   (b)     780                         780             780           (e)   6/28/2019   (e)
C-Store   Knoxville, TN   (b)     650                         650             650           (e)   6/28/2019   (e)
C-Store   Lenoir City, TN   (b)     830                         830             830           (e)   6/28/2019   (e)
C-Store   Oak Ridge, TN   (b)     880                         880             880           (e)   6/28/2019   (e)
C-Store   Kingston, TN   (b)     1,299                         1,299             1,299           (e)   6/28/2019   (e)
C-Store   Rockwood, TN   (b)     910                         910             910           (e)   6/28/2019   (e)
C-Store   Knoxville, TN   (b)     1,441                         1,441             1,441           (e)   6/28/2019   (e)
C-Store   Cleveland, TN   (b)     771                         771             771           (e)   6/28/2019   (e)
C-Store   Kingston, TN   (b)     499                         499             499           (e)   6/28/2019   (e)
C-Store   Sumiton, AL   (b)     1,138       420                   1,138       420       1,558       (324   1970   7/11/2016   11 to 20 Years
C-Store   Sylacauga, AL   (b)     560       438                   560       438       998       (182   1948   7/11/2016   15 to 20 Years
C-Store   Anniston, AL   (b)     490       210                   490       210       700       (131   1960   7/11/2016   15 to 20 Years
C-Store   Ragland, AL   (b)     385       595                   385       595       980       (142   1986   7/11/2016   15 to 30 Years
C-Store   Lagrange, GA   (b)     1,033       368                   1,033       368       1,401       (203   1972   7/11/2016   15 to 20 Years
C-Store   Auburn, AL   (b)     2,188       945             85       2,188       1,030       3,218       (334   2001   7/11/2016   22 to 40 Years
C-Store   Greenville, AL   (b)     1,278       490                   1,278       490       1,768       (268   1991   7/11/2016   19 to 30 Years
C-Store   Lanett, AL   (b)     788       350                   788       350       1,138       (205   1975   7/11/2016   15 to 20 Years
C-Store   Lincoln, AL   (b)     1,785       1,312             2       1,785       1,314       3,099       (370   2001   7/11/2016   22 to 40 Years
C-Store   Montgomery, AL   (b)     648       228                   648       228       876       (146   1965   7/11/2016   15 to 20 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Prattville, AL   (b)     1,978       735                   1,978       735       2,713       (284   1995   7/11/2016   19 to 30 Years
C-Store   Panama City, FL   (b)     630       298                   630       298       928       (156   1951   7/11/2016   15 to 20 Years
C-Store   Valley, AL   (b)     280       368                   280       368       648       (125   1955   7/11/2016   15 to 20 Years
C-Store   Lebo, KS   (b)     1,951       762                   1,951       762       2,713       (421   1976   11/18/2014   15 to 20 Years
C-Store   Kearney, MO   (b)     529       925                   529       925       1,454       (266   2001   11/18/2014   15 to 30 Years
C-Store   Cleveland, MO   (b)     701       894                   701       894       1,595       (387   1994   11/18/2014   15 to 20 Years
C-Store   Kansas City, MO   (b)     925       1,027                   925       1,027       1,952       (315   1996   11/18/2014   15 to 30 Years
C-Store   Scottsdale, AZ   (b)     4,416       2,384                   4,416       2,384       6,800       (1,561   2000   7/2/2007   15 to 40 Years
C-Store   Scottsdale, AZ   (b)     5,123       2,683                   5,123       2,683       7,806       (2,227   1991   7/2/2007   15 to 40 Years
C-Store   Cave Creek, AZ   (b)     2,711       2,201                   2,711       2,201       4,912       (1,320   1998   7/2/2007   15 to 40 Years
C-Store   Scottsdale, AZ   (b)     3,437       2,373                   3,437       2,373       5,810       (1,971   1996   7/2/2007   15 to 40 Years
C-Store   Phoenix, AZ   (b)     2,243       4,243                   2,243       4,243       6,486       (2,310   2001   7/2/2007   15 to 40 Years
C-Store   Scottsdale, AZ   (b)     2,765       2,196                   2,765       2,196       4,961       (1,433   1995   7/2/2007   15 to 40 Years
C-Store   Oakland, FL   (b)     1,303       1,109                   1,303       1,109       2,412       (617   2002   12/19/2013   15 to 30 Years
C-Store   Huntsville, AR   (b)     359       504             65       359       569       928       (141   2003   9/30/2016   15 to 40 Years
C-Store   Butler, MO   (b)     919       1,076             113       919       1,189       2,108       (346   1996   9/30/2016   15 to 30 Years
C-Store   Orlando, FL   (b)     1,644       1,829                   1,644       1,829       3,473       (615   2000   12/19/2013   15 to 40 Years
C-Store   Joplin, MO   (b)     352       434             28       352       462       814       (85   2008   5/5/2017   15 to 40 Years
C-Store   Clinton, MO   (b)     291       404                   291       404       695       (111   1960   9/30/2016   15 to 30 Years
C-Store   Kimberling City, MO   (b)     173       474             98       173       572       745       (84   1950   3/23/2017   15 to 30 Years
C-Store   Orlando, FL   (b)     973       350                   973       350       1,323       (277   1991   12/19/2013   15 to 30 Years
C-Store   Bergman, AR   (b)     404       549                   404       549       953       (154   1996   9/30/2016   14 to 40 Years
C-Store   Fayetteville, AR   (b)     1,760       953             80       1,760       1,033       2,793       (250   1996   9/30/2016   16 to 40 Years
C-Store   Richland, MO   (b)     2,657       1,181                   2,657       1,181       3,838       (796   1984   5/5/2017   10 to 20 Years
C-Store   Orlando, FL   (b)     1,128       496                   1,128       496       1,624       (325   1995   12/19/2013   15 to 30 Years
C-Store   Berryville, AR   (b)     314       381                   314       381       695       (105   1996   9/30/2016   14 to 40 Years
C-Store   Holiday Island, AR   (b)     222       357                   222       357       579       (93   2000   5/5/2017   10 to 30 Years
C-Store   Apopka, FL   (b)     477       389                   477       389       866       (177   1989   12/19/2013   15 to 30 Years
C-Store   Branson, MO   (b)     1,781       2,864             80       1,781       2,944       4,725       (637   1992   3/23/2017   15 to 30 Years
C-Store   Harrison, AR   (b)     594       482             66       594       548       1,142       (135   1981   9/30/2016   16 to 40 Years
C-Store   Orlando, FL   (b)     1,303       496                   1,303       496       1,799       (311   1994   12/19/2013   15 to 30 Years
C-Store   Branson, MO   (b)     1,177       1,199             53       1,177       1,252       2,429       (345   1999   9/30/2016   12 to 40 Years
C-Store   Springfield, MO   (b)     431       732             141       431       873       1,304       (204   1988   3/31/2016   18 to 30 Years
C-Store   Springdale, AR   (b)     2,119       1,401             157       2,119       1,558       3,677       (421   2010   9/30/2016   17 to 40 Years
C-Store   Harrison, AR   (b)     2,309       2,040                   2,309       2,040       4,349       (926   1996   9/30/2016   11 to 30 Years
C-Store   Orlando, FL   (b)     1,167       982                   1,167       982       2,149       (493   2001   12/19/2013   15 to 30 Years
C-Store   Springfield, MO   (b)     327       732             41       327       773       1,100       (178   1987   3/31/2016   18 to 30 Years
 
1
41

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
C-Store   Springfield, MO   (b)     562       1,007             47       562       1,054       1,616       (257   1989   3/31/2016   18 to 30 Years
C-Store   Neosho, MO   (b)     504       628             43       504       671       1,175       (168   2002   9/30/2016   14 to 40 Years
C-Store   Harrison, AR   (b)     235       202             123       235       325       560       (83   1971   9/30/2016   17 to 30 Years
C-Store   Kissimmee, FL   (b)     759       1,061             13       759       1,074       1,833       (490   2005   12/19/2013   15 to 30 Years
C-Store   Ridgedale, MO   (b)     1,199       1,177             58       1,199       1,235       2,434       (351   1995   9/30/2016   13 to 30 Years
C-Store   Harrison, AR   (b)     224       717             60       224       777       1,001       (159   1980   9/30/2016   12 to 30 Years
C-Store   Orlando, FL   (b)     1,080       798                   1,080       798       1,878       (368   2001   12/19/2013   15 to 30 Years
C-Store   Forsyth, MO   (b)     370       572                   370       572       942       (156   1950   9/30/2016   14 to 30 Years
C-Store   Harrison, AR   (b)     392       336             161       392       497       889       (151   1982   9/30/2016   12 to 30 Years
C-Store   Fayetteville, AR   (b)     986       897             128       986       1,025       2,011       (271   1996   9/30/2016   15 to 30 Years
C-Store   Yellville, AR   (b)     269       740             87       269       827       1,096       (182   1984   9/30/2016   13 to 30 Years
C-Store   Harrison, AR   (b)     673       471             73       673       544       1,217       (139   1985   9/30/2016   14 to 30 Years
C-Store   Lead Hill, AR   (b)     258       1,054             78       258       1,132       1,390       (208   1974   9/30/2016   15 to 30 Years
C-Store   Oviedo, FL   (b)     973       798                   973       798       1,771       (409   1995   12/19/2013   15 to 30 Years
C-Store   Branson, MO   (b)     605       818             7       605       825       1,430       (224   1993   9/30/2016   15 to 30 Years
C-Store   Mountain Home, AR   (b)     224       493             90       224       583       807       (113   1991   9/30/2016   12 to 40 Years
C-Store   Marshfield, MO   (b)     615       811             32       615       843       1,458       (218   1987   3/31/2016   18 to 30 Years
Curacao
(f)
  Fountain Valley, CA   (b)     9,470       13,326       (2,049     (5,007     7,421       8,319       15,740       (345   1968   12/30/2014   6 to 24 Years
Curt Manufacturing   Altoona, WI   (b)     3,184       5,766                   3,184       5,766       8,950       (79   2009   11/13/2020   10 to 29 Years
Curt Manufacturing   Altoona, WI   (b)     1,398       7,278                   1,398       7,278       8,676       (63   2010   11/13/2020   9 to 29 Years
CVS   St. John, MO   (b)     1,733       3,095       91       365       1,824       3,460       5,284       (1,482   1996   7/17/2013   1 to 43 Years
CVS   Glenville Scotia, NY   (b)     1,314       3,964                   1,314       3,964       5,278       (936   2006   7/17/2013   12 to 43 Years
CVS   Clinton, NY   (b)     1,050       2,090                   1,050       2,090       3,140       (584   2005   7/17/2013   11 to 42 Years
CVS   Mechanicville, NY   (b)     654       3,120                   654       3,120       3,774       (734   1997   7/17/2013   4 to 38 Years
CVS   Dallas, TX   (b)     945       1,967                   945       1,967       2,912       (473   1995   7/17/2013   1 to 39 Years
CVS   Maynard, MA   (b)     1,683       3,984                   1,683       3,984       5,667       (831   2004   7/17/2013   14 to 42 Years
CVS   Lake Worth, TX   (b)     1,044       1,817                   1,044       1,817       2,861       (609   1996   7/17/2013   2 to 30 Years
CVS   Richardson, TX   (a)     803       2,575                   803       2,575       3,378       (584   1996   7/17/2013   3 to 40 Years
CVS   River Oaks, TX   (a)     829       2,871                   829       2,871       3,700       (711   1996   7/17/2013   3 to 40 Years
CVS   The Colony, TX   (b)     1,028       1,769                   1,028       1,769       2,797       (437   1996   7/17/2013   1 to 40 Years
CVS   Wichita Falls, TX   (b)     503       2,530                   503       2,530       3,033       (612   1995   7/17/2013   2 to 40 Years
CVS   Wichita Falls, TX   (b)     528       2,022                   528       2,022       2,550       (472   1995   7/17/2013   1 to 40 Years
CVS   Amarillo, TX   (b)     916       2,747                   916       2,747       3,663       (824   1994   7/17/2013   20 to 20 Years
CVS   Richland Hills, TX   (a)     997       2,951                   997       2,951       3,948       (682   1997   7/17/2013   4 to 40 Years
CVS   Alpharetta, GA   (a)     968       2,614                   968       2,614       3,582       (648   1998   7/17/2013   5 to 40 Years
CVS   Atlanta, GA   (a)     1,316       2,266                   1,316       2,266       3,582       (600   2006   7/17/2013   14 to 42 Years
CVS   Lincoln, IL   (a)     444       3,043                   444       3,043       3,487       (725   2007   7/17/2013   11 to 43 Years
 
1
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
CVS   Okeechobee, FL   (b)     674       5,088                   674       5,088       5,762       (1,435   2001   7/17/2013   9 to 30 Years
CVS   Orlando, FL   (b)     781       3,799                   781       3,799       4,580       (1,085   2005   7/17/2013   10 to 30 Years
CVS   Kissimmee, FL   (b)     1,508       2,153                   1,508       2,153       3,661       (562   1995   7/17/2013   2 to 40 Years
CVS   Indianapolis, IN   (a)     733       2,882                   733       2,882       3,615       (723   1997   7/17/2013   10 to 38 Years
CVS   Indianapolis, IN   (a)     860       2,754                   860       2,754       3,614       (711   1998   7/17/2013   10 to 40 Years
CVS   Gulfport, MS   (b)     441       4,208                   441       4,208       4,649       (905   2000   7/17/2013   12 to 40 Years
CVS   Madison, MS   (b)     745       3,323                   745       3,323       4,068       (777   2004   7/17/2013   11 to 40 Years
CVS   Waynesville, NC   (b)     1,495       2,365                   1,495       2,365       3,860       (583   2005   7/17/2013   12 to 42 Years
CVS   Hamilton, OH   (b)     738       2,429                   738       2,429       3,167       (623   1998   7/17/2013   5 to 39 Years
CVS   Portsmouth, OH   (b)     354       1,953       (276     (1,514     78       439       517       (52   1997   7/17/2013   7 to 33 Years
CVS   Del City, OK   (b)     1,027       3,428                   1,027       3,428       4,455       (208   1998   7/17/2013   33 to 33 Years
CVS   New Cumberland, PA   (b)     794       2,663                   794       2,663       3,457       (633   2007   7/17/2013   12 to 43 Years
CVS   Myrtle Beach, SC   (b)     828       4,024                   828       4,024       4,852       (899   2004   7/17/2013   12 to 42 Years
CVS   Florence, SC   (b)     744       2,070                   744       2,070       2,814       (512   1998   7/17/2013   5 to 39 Years
CVS   Columbia, TN   (b)     842       1,864                   842       1,864       2,706       (507   1997   7/17/2013   4 to 37 Years
CVS   Onley, VA   (b)     2,530       2,296                   2,530       2,296       4,826       (672   2007   7/17/2013   12 to 43 Years
Dairy Queen   Anchorage, AK   (b)     1,150       1,262                   1,150       1,262       2,412       (170   2007   2/16/2017   15 to 40 Years
Dairy Queen   Anchorage, AK   (b)     333       461                   333       461       794       (65   2010   2/16/2017   10 to 40 Years
Dairy Queen   Wasilla, AK   (b)     577       1,260                   577       1,260       1,837       (356   1984   2/16/2017   5 to 20 Years
Dairy Queen   Palmer, AK   (b)     510       1,350             90       510       1,440       1,950       (249   2000   2/16/2017   10 to 30 Years
Dave & Buster’s   Westlake, OH   (b)     2,856       1             44       2,856       45       2,901       (16   2016   5/18/2017   10 to 10 Years
Dave & Buster’s   Addison, IL   (b)     4,690       6,692                   4,690       6,692       11,382       (3,513   1995   7/17/2013   7 to 24 Years
Dave & Buster’s   Tucson, AZ   (b)     2,874       5,655             43       2,874       5,698       8,572       (730   2017   3/31/2017   15 to 50 Years
David’s Bridal   Lenexa, KS   (b)     919       2,476                   919       2,476       3,395       (579   2005   7/17/2013   2 to 47 Years
David’s Bridal
(f)
  Topeka, KS   (b)     542       2,251             (15     542       2,236       2,778       (438   2006   7/17/2013   12 to 48 Years
Davis-Standard   Pawcatuck, CT   (b)     2,736       9,218             36       2,736       9,254       11,990       (1,597   1969   10/27/2016   7 to 40 Years
Davis-Standard   Fulton, NY   (b)     445       6,113             35       445       6,148       6,593       (849   1983   10/27/2016   5 to 40 Years
Defined Fitness   Farmington, NM   (b)     2,242       6,696                   2,242       6,696       8,938       (1,158   1999   4/23/2015   15 to 40 Years
Defined Fitness   Albuquerque, NM   (b)     2,391       4,008                   2,391       4,008       6,399       (918   2001   4/23/2015   15 to 30 Years
Defined Fitness   Albuquerque, NM   (b)     4,732       6,845                   4,732       6,845       11,577       (1,341   1972   4/23/2015   15 to 40 Years
Defined Fitness   Albuquerque, NM   (b)     1,914       3,724                   1,914       3,724       5,638       (827   1995   4/23/2015   15 to 30 Years
Defined Fitness   Rio Rancho, NM   (b)     1,448       2,172                   1,448       2,172       3,620       (515   1997   4/23/2015   15 to 30 Years
Defined Fitness   Albuquerque, NM   (b)     1,891       6,042             6       1,891       6,048       7,939       (203   2020   12/27/2019   14 to 45 Years
Defined Fitness   Rio Rancho, NM   (b)     1,569       5,793                   1,569       5,793       7,362       (17   2020   11/24/2020   14 to 40 Years
Defy Trampoline Park   Little Rock, AR   (b)     1,489       3,888             11       1,489       3,899       5,388       (391   2017   9/29/2017   15 to 40 Years
Defy Trampoline Park   Indianapolis, IN   (b)     861       4,222                   861       4,222       5,083       (291   2018   8/31/2018   16 to 40 Years
Defy Trampoline Park   Wilmington, NC   (b)     837       1,429                   837       1,429       2,266       (529   2006   9/30/2015   9 to 20 Years
 
14
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Defy Trampoline Park   Baton Rouge, LA   (b)     1,076       2,289                   1,076       2,289       3,365       (443   2015   11/13/2015   10 to 40 Years
Defy Trampoline Park   Flowood, MS   (b)     900       1,137                   900       1,137       2,037       (398   1995   11/13/2015   9 to 20 Years
Defy Trampoline Park   Augusta, GA   (b)     1,081       1,488                   1,081       1,488       2,569       (668   1998   9/30/2015   10 to 20 Years
Defy Trampoline Park   Brentwood, TN   (b)     2,292       2,273             2       2,292       2,275       4,567       (788   1970   9/30/2015   9 to 20 Years
Defy Trampoline Park   Clovis, CA   (b)     1,117       26       600       3,745       1,717       3,771       5,488       (263   2017   12/6/2016   10 to 35 Years
Defy Trampoline Park   Rogers, AR   (b)     635       2,376                   635       2,376       3,011       (485   2014   9/30/2015   9 to 40 Years
Defy Trampoline Park
(f)
  Louisville, KY   (b)     2,205       3,551                   2,205       3,551       5,756       (1,235   1995   11/2/2015   9 to 20 Years
Denny’s   Benson, AZ   (b)     313       336                   313       336       649       (143   1996   3/20/2015   15 to 20 Years
Denny’s   Fountain Hills, AZ   (b)     684       1,073       (24     25       660       1,098       1,758       (81   1995   11/25/2019   8 to 20 Years
Dillon Tire   Lincoln, NE   (b)     1,144       2,935                   1,144       2,935       4,079       (434   1972   11/25/2019   2 to 10 Years
Direct Shot Distributing   Franklin, IN   (b)     6,447       20,390                   6,447       20,390       26,837       (144   2020   11/10/2020   6 to 34 Years
Dollar General   Creal Springs, IL   (b)     261       653                   261       653       914       (173   2014   4/27/2015   14 to 40 Years
Dollar General   Fruita, CO   (a)     255       1,025                   255       1,025       1,280       (239   2012   10/29/2013   13 to 40 Years
Dollar General   De Soto, KS   (a)     301       1,049                   301       1,049       1,350       (277   2012   10/29/2013   13 to 40 Years
Dollar General   La Cygne, KS   (a)     120       833                   120       833       953       (195   2012   10/29/2013   13 to 40 Years
Dollar General   Topeka, KS   (a)     313       882                   313       882       1,195       (223   2012   10/29/2013   13 to 40 Years
Dollar General   Emporia, KS   (a)     292       1,176                   292       1,176       1,468       (281   2012   10/29/2013   13 to 40 Years
Dollar General   Hill City, KS   (a)     243       815                   243       815       1,058       (221   2012   10/29/2013   13 to 40 Years
Dollar General   Pagosa Springs, CO   (a)     253       1,031                   253       1,031       1,284       (230   2012   10/29/2013   13 to 40 Years
Dollar General   Silt, CO   (a)     334       894                   334       894       1,228       (201   2012   10/29/2013   13 to 40 Years
Dollar General   Tornillo, TX   (a)     255       818                   255       818       1,073       (217   2012   10/29/2013   13 to 40 Years
Dollar General   Crystal City, TX   (a)     295       939                   295       939       1,234       (209   2012   10/29/2013   13 to 40 Years
Dollar General   Temple, TX   (a)     414       897                   414       897       1,311       (221   2012   10/29/2013   13 to 40 Years
Dollar General   Gore, OK   (a)     182       924                   182       924       1,106       (221   2012   10/29/2013   13 to 40 Years
Dollar General   Stigler, OK   (a)     610       809                   610       809       1,419       (225   2012   10/29/2013   13 to 40 Years
Dollar General   Okay, OK   (a)     200       901                   200       901       1,101       (211   2012   10/29/2013   13 to 40 Years
Dollar General   Hobart, OK   (a)     230       910                   230       910       1,140       (223   2012   10/29/2013   13 to 40 Years
Dollar General   Atoka, OK   (a)     466       1,304                   466       1,304       1,770       (295   2012   10/29/2013   13 to 40 Years
Dollar General   Claremore, OK   (a)     243       928                   243       928       1,171       (207   2012   10/29/2013   13 to 40 Years
Dollar General   Adair, OK   (a)     264       855                   264       855       1,119       (199   2012   10/29/2013   13 to 40 Years
Dollar General   Altus, OK   (a)     315       918                   315       918       1,233       (205   2012   10/29/2013   13 to 40 Years
Dollar General   Ketchum, OK   (a)     297       760                   297       760       1,057       (217   2012   10/29/2013   13 to 40 Years
Dollar General   Spiro, OK   (a)     263       1,099                   263       1,099       1,362       (282   2012   10/29/2013   13 to 40 Years
Dollar General   Walters, OK   (a)     173       1,042                   173       1,042       1,215       (238   2012   10/29/2013   13 to 40 Years
Dollar General   Sand Springs, OK   (a)     396       1,039                   396       1,039       1,435       (247   2012   10/29/2013   13 to 40 Years
Dollar General   Ord, NE   (a)     222       1,010                   222       1,010       1,232       (241   2012   10/29/2013   13 to 40 Years
Dollar General   Las Cruces, NM   (a)     452       900                   452       900       1,352       (235   2012   10/29/2013   13 to 40 Years
 
14
4

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Dollar General   Hobbs, NM   (a)     405       949                   405       949       1,354       (255   2012   10/29/2013   13 to 40 Years
Dollar General   Wetumpka, AL   (a)     303       784                   303       784       1,087       (194   2011   9/17/2013   12 to 40 Years
Dollar General   Orrville, AL   (a)     192       826                   192       826       1,018       (211   2011   9/17/2013   12 to 40 Years
Dollar General   Rehobeth, AL   (a)     259       774                   259       774       1,033       (182   2011   9/17/2013   12 to 40 Years
Dollar General   Tallassee, AL   (a)     141       895                   141       895       1,036       (195   2011   9/17/2013   12 to 40 Years
Dollar General   Jasper, AL   (a)     365       1,052                   365       1,052       1,417       (245   2011   9/17/2013   12 to 40 Years
Dollar General   Cowarts, AL   (a)     396       836                   396       836       1,232       (199   2011   9/17/2013   12 to 40 Years
Dollar General   Centre, AL   (a)     233       767                   233       767       1,000       (185   2011   9/17/2013   12 to 40 Years
Dollar General   Crossville, TN   (a)     264       849                   264       849       1,113       (201   2011   9/17/2013   12 to 40 Years
Dollar General   Eastaboga, AL   (a)     223       937                   223       937       1,160       (217   2011   9/17/2013   12 to 40 Years
Dollar General   Enterprise, AL   (a)     255       803                   255       803       1,058       (188   2011   9/17/2013   12 to 40 Years
Dollar General   Western Grove, AR   (b)     391       595                   391       595       986       (182   2014   12/15/2014   14 to 40 Years
Dollar General   Quinton, OK   (b)     245       683                   245       683       928       (152   2014   12/15/2014   14 to 40 Years
Dollar General   Alpena, AR   (b)     359       600                   359       600       959       (179   2014   12/15/2014   14 to 40 Years
Dollar General   Keota, OK   (b)     215       687                   215       687       902       (161   2014   12/15/2014   14 to 40 Years
Dollar General   Cameron, OK   (b)     312       710                   312       710       1,022       (152   2014   12/15/2014   14 to 40 Years
Dollar General   Center Ridge, AR   (b)     313       595                   313       595       908       (178   2014   12/15/2014   14 to 40 Years
Dollar General   Lakeview, IA   (b)     251       568                   251       568       819       (142   2015   4/27/2015   14 to 40 Years
Dollar General   Pleasant Hope, MO   (b)     263       650                   263       650       913       (165   2014   5/14/2015   14 to 40 Years
Dollar General   Los Lunas, NM   (b)     281       740                   281       740       1,021       (195   2015   5/14/2015   14 to 40 Years
Dollar General   Bloomfield, NM   (b)     409       663                   409       663       1,072       (157   2015   5/14/2015   14 to 40 Years
Dollar General   Drexel, MO   (b)     184       727                   184       727       911       (165   2015   5/14/2015   14 to 40 Years
Dollar General   La Plata, MO   (b)     283       653                   283       653       936       (173   2014   4/27/2015   14 to 40 Years
Dollar General   Pineville, MO   (b)     253       699                   253       699       952       (190   2014   3/31/2015   14 to 40 Years
Dollar General   Aztec, NM   (b)     548       623                   548       623       1,171       (175   2014   3/31/2015   14 to 40 Years
Dollar General   Bentonia, MS   (b)     227       745                   227       745       972       (156   2014   6/22/2015   13 to 40 Years
Dollar General   Ardmore, TN   (b)     950       1,847             31       950       1,878       2,828       (659   2005   7/17/2013   8 to 40 Years
Dollar General   Byng, OK   (b)     205       646                   205       646       851       (136   2015   7/14/2015   14 to 40 Years
Dollar General   Maben, MS   (b)     263       734                   263       734       997       (171   2014   9/24/2015   13 to 40 Years
Dollar General   Laurel, MS   (b)     683       421                   683       421       1,104       (37   2012   11/25/2019   7 to 31 Years
Dollar General   Emmalena, KY   (b)     336       812                   336       812       1,148       (10   2018   9/30/2020   12 to 33 Years
Dollar General   Grethel, KY   (b)     326       792                   326       792       1,118       (10   2018   9/30/2020   13 to 34 Years
Dollar General   Wooten, KY   (b)     468       537                   468       537       1,005       (9   2018   9/30/2020   13 to 33 Years
Dollar General   Salyersville, KY   (b)     234       823                   234       823       1,057       (9   2019   9/30/2020   13 to 34 Years
Dollar General   Salyersville, KY   (b)     326       732                   326       732       1,058       (9   2019   9/30/2020   13 to 34 Years
Dollar General   Tyner, KY   (b)     458       569                   458       569       1,027       (8   2019   9/30/2020   13 to 44 Years
Dollar General   Spencer, NY   (b)     810       569                   810       569       1,379           2019   12/22/2020   13 to 34 Years
 
14
5

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Dollar General   Munnsville, NY   (b)     370       739                   370       739       1,109           2019   12/22/2020   13 to 34 Years
Dollar General   Washburn, ME   (b)     330       880                   330       880       1,210           2018   12/22/2020   12 to 33 Years
Dollar General   Andover, NY   (b)     340       800                   340       800       1,140           2019   12/22/2020   13 to 34 Years
Dollar Tree / Family Dollar   Portsmouth, OH   (a)     219       2,049       (165     (1,330     54       719       773       (72   1997   7/17/2013   7 to 34 Years
Dollar Tree / Family Dollar   Alliance, OH   (b)     556       1,317       (423     (810     133       507       640       (156   1996   7/17/2013   5 to 27 Years
Dollar Tree / Family Dollar   Mesa, AZ   (b)     734       2       102       630       836       632       1,468       (131   1955   11/13/2014   10 to 50 Years
Dollar Tree / Family Dollar   Kincheloe, MI   (b)     317       626                   317       626       943       (176   2014   3/20/2015   14 to 40 Years
Dollar Tree / Family Dollar
  Mansfield, OH   (b)     288       825             59       288       884       1,172       (176   2014   4/28/2015   9 to 40 Years
Dollar Tree / Family Dollar
  Des Moines, IA   (b)     354       807                   354       807       1,161       (199   2014   3/20/2015   8 to 40 Years
Dollar Tree / Family Dollar
  Otter Tail, MN   (b)     338       791                   338       791       1,129       (172   2014   3/20/2015   14 to 40 Years
Dollar Tree / Family Dollar
  Evart, MI   (b)     306       703                   306       703       1,009       (168   2014   3/20/2015   14 to 40 Years
Dollar Tree / Family Dollar
  Anderson, IN   (b)     359       781                   359       781       1,140       (180   2015   3/20/2015   14 to 40 Years
Dollar Tree / Family Dollar
  Bulls Gap, TN   (b)     466       762                   466       762       1,228       (179   2014   3/20/2015   14 to 40 Years
Dollar Tree / Family Dollar
  Duluth, MN   (b)     422       869                   422       869       1,291       (201   2015   5/12/2015   9 to 40 Years
Dollar Tree / Family Dollar
  Buena Vista, GA   (b)     431       769                   431       769       1,200       (62   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Montgomery, AL   (b)     426       657                   426       657       1,083       (52   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Clarksville, TN   (b)     460       965                   460       965       1,425       (56   2014   9/19/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Standish, ME   (b)     265       978                   265       978       1,243       (64   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Prattville, AL   (b)     815       476                   815       476       1,291       (56   2014   9/19/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Southaven, MS   (b)     443       1,209                   443       1,209       1,652       (67   2014   9/19/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Prichard, AL   (b)     735       436                   735       436       1,171       (40   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Marion, MS   (b)     431       600                   431       600       1,031       (46   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Ridgeland, MS   (b)     671       734                   671       734       1,405       (52   2014   9/19/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Brownsville, TN   (b)     251       774                   251       774       1,025       (48   2014   9/19/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Big Sandy, TN   (b)     270       585                   270       585       855       (42   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Brundidge, AL   (b)     341       601                   341       601       942       (48   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Oakdale, LA   (b)     236       884                   236       884       1,120       (55   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  North Little Rock, AR   (b)     295       811                   295       811       1,106       (53   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Quinlan, TX   (b)     205       729                   205       729       934       (52   2014   9/19/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Boling-Iago, TX  
(b)
    256       687                   256       687       943       (49   2013   9/19/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Rising Star, TX   (b)     155       736                   155       736       891       (49   2014   9/19/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Lake Charles, LA   (b)     358       825                   358       825       1,183       (55   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Marsing, ID   (b)     340       811                   340       811       1,151       (57   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Calvert, TX   (b)     178       891                   178       891       1,069       (54   2014   9/19/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Hillsboro, TX   (b)     214       758                   214       758       972       (44   2014   9/19/2019   10 to 32 Years
 
14
6

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Dollar Tree / Family Dollar
  Monticello, UT   (b)     289       865                   289       865       1,154       (61   2013   9/19/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Bonifay, FL   (b)     509       493                   509       493       1,002       (45   2014   6/28/2019   12 to 26 Years
Dollar Tree / Family Dollar
  Monticello, FL   (b)     413       762                   413       762       1,175       (54   2014   6/28/2019   13 to 33 Years
Dollar Tree / Family Dollar
  Lakeland, FL   (b)     634       687                   634       687       1,321       (63   2014   6/28/2019   12 to 27 Years
Dollar Tree / Family Dollar
  Sanford, NC   (b)     634       656                   634       656       1,290       (62   2014   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Lansing, MI   (b)     702       584                   702       584       1,286       (70   2013   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Laurens, SC   (b)     543       586                   543       586       1,129       (53   2014   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Chocowinity, NC   (b)     487       526                   487       526       1,013       (52   2014   6/28/2019   11 to 26 Years
Dollar Tree / Family Dollar
  Hubert, NC   (b)     665       761                   665       761       1,426       (58   2014   6/28/2019   13 to 33 Years
Dollar Tree / Family Dollar
  St. Petersburg, FL   (b)     961       545                   961       545       1,506       (54   2014   6/28/2019   10 to 31 Years
Dollar Tree / Family Dollar
  Fort Mill, SC   (b)     553       847                   553       847       1,400       (55   2014   6/28/2019   10 to 36 Years
Dollar Tree / Family Dollar
  Port St. Lucie, FL   (b)     796       745                   796       745       1,541       (58   2014   6/28/2019   13 to 31 Years
Dollar Tree / Family Dollar
  Orlando, FL   (b)     916       542                   916       542       1,458       (49   2014   6/28/2019   10 to 31 Years
Dollar Tree / Family Dollar
  Mobile, AL   (b)     375       848                   375       848       1,223       (47   2013   6/28/2019   12 to 35 Years
Dollar Tree / Family Dollar
  Bossier City, LA   (b)     543       536                   543       536       1,079       (50   2013   6/28/2019   11 to 26 Years
Dollar Tree / Family Dollar
  Lillian, AL   (b)     362       687                   362       687       1,049       (62   2013   6/28/2019   10 to 31 Years
Dollar Tree / Family Dollar
  Alapaha, GA   (b)     301       513                   301       513       814       (50   2013   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Church Point, LA   (b)     434       687                   434       687       1,121       (52   2013   6/28/2019   13 to 30 Years
Dollar Tree / Family Dollar
  Griffin, GA   (b)     487       809                   487       809       1,296       (61   1976   6/28/2019   8 to 29 Years
Dollar Tree / Family Dollar
  Atlanta, GA   (b)     929       630                   929       630       1,559       (57   1968   6/28/2019   9 to 23 Years
Dollar Tree / Family Dollar
  Abbeville, AL   (b)     245       670                   245       670       915       (58   2013   6/28/2019   10 to 27 Years
Dollar Tree / Family Dollar
  Anniston, AL   (b)     492       510                   492       510       1,002       (63   2013   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Doerun, GA   (b)     210       586                   210       586       796       (55   2014   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Danville, VA   (b)     346       570                   346       570       916       (57   2013   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Nampa, ID   (b)     418       940                   418       940       1,358       (65   2002   6/28/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Hastings, NE   (b)     293       623                   293       623       916       (53   2002   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Detroit, MI   (b)     269       897                   269       897       1,166       (59   1932   6/28/2019   11 to 28 Years
Dollar Tree / Family Dollar
  Rockford, IL   (b)     436       1,031                   436       1,031       1,467       (69   1988   6/28/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Newberry, MI   (b)     711       1,081                   711       1,081       1,792       (76   2010   6/28/2019   10 to 32 Years
Dollar Tree / Family Dollar
  Mohave Valley, AZ   (b)     327       666                   327       666       993       (69   1974   6/28/2019   10 to 22 Years
Dollar Tree / Family Dollar
  Fort Madison, IA   (b)     179       274                   179       274       453       (42   2003   6/28/2019   7 to 18 Years
Dollar Tree / Family Dollar
  Paulden, AZ   (b)     343       821                   343       821       1,164       (65   2013   6/28/2019   12 to 30 Years
Dollar Tree / Family Dollar
  N. Platte, NE   (b)     208       285                   208       285       493       (49   2002   6/28/2019   6 to 14 Years
Dollar Tree / Family Dollar
  St. Louis, MO   (b)     171       1,509                   171       1,509       1,680       (106   2004   9/19/2019   7 to 20 Years
 
14
7

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Dollar Tree / Family Dollar
  Grenada, MS   (b)     198       678                   198       678       876       (47   2013   9/19/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Union, MS   (b)     196       629                   196       629       825       (49   2013   9/19/2019   10 to 24 Years
Dollar Tree / Family Dollar
  Mendenhall, MS   (b)     239       686                   239       686       925       (53   2014   9/19/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Oklahoma City, OK   (b)     221       1,332                   221       1,332       1,553       (79   1991   9/19/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Kansas City, MO   (b)     148       1,007                   148       1,007       1,155       (104   2003   9/19/2019   7 to 14 Years
Dollar Tree / Family Dollar
  Diamond Head, MS   (b)     200       905                   200       905       1,105       (55   2013   9/19/2019   10 to 29 Years
Dollar Tree / Family Dollar
  Columbus, MS   (b)     139       410                   139       410       549       (48   1986   9/19/2019   6 to 15 Years
Dollar Tree / Family Dollar
  Caledonia, MS   (b)     252       463                   252       463       715       (45   2013   9/19/2019   10 to 24 Years
Dollar Tree / Family Dollar
  Louisville, MS   (b)     142       673                   142       673       815       (46   2014   9/19/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Madisonville, KY   (b)     538       700                   538       700       1,238       (52   2013   6/28/2019   9 to 30 Years
Dollar Tree / Family Dollar
  Fayetteville, NC   (b)     245       471                   245       471       716       (40   1973   6/28/2019   10 to 28 Years
Dollar Tree / Family Dollar
  Old Hickory, TN   (b)     749       846                   749       846       1,595       (54   2013   6/28/2019   11 to 36 Years
Dollar Tree / Family Dollar
  Haw River, NC   (b)     431       569                   431       569       1,000       (54   2013   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Louisville, KY   (b)     746       569                   746       569       1,315       (55   2013   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  Memphis, TN   (b)     197       368                   197       368       565       (53   2005   6/28/2019   10 to 17 Years
Dollar Tree / Family Dollar
  Brandenburg, KY   (b)     527       594                   527       594       1,121       (51   2013   6/28/2019   10 to 30 Years
Dollar Tree / Family Dollar
  Knoxville, TN   (b)     276       652                   276       652       928       (44   1986   6/28/2019   8 to 30 Years
Dollar Tree / Family Dollar
  Memphis, TN   (b)     551       624                   551       624       1,175       (45   2013   6/28/2019   12 to 31 Years
Dollar Tree / Family Dollar
  Memphis, TN   (b)     315       336                   315       336       651       (45   2003   6/28/2019   8 to 25 Years
Dollar Tree / Family Dollar
  Aiken, SC   (b)     335       808                   335       808       1,143       (55   2013   6/28/2019   11 to 36 Years
Dollar Tree / Family Dollar
  Lancaster, SC   (b)     620       571                   620       571       1,191       (53   2013   6/28/2019   11 to 26 Years
Dollar Tree / Family Dollar
  Hardeeville, SC   (b)     236       652                   236       652       888       (43   2013   6/28/2019   11 to 32 Years
Dollar Tree / Family Dollar
  Williamston, SC   (b)     373       581                   373       581       954       (51   2013   6/28/2019   10 to 27 Years
Dollar Tree / Family Dollar
  N. Charleston, SC   (b)     682       573                   682       573       1,255       (61   2013   6/28/2019   8 to 30 Years
Dollar Tree / Family Dollar
  Greenwood, SC   (b)     569       742                   569       742       1,311       (71   1975   6/28/2019   7 to 23 Years
Dollar Tree / Family Dollar
  Columbia, SC   (b)     551       534                   551       534       1,085       (51   2013   6/28/2019   11 to 25 Years
Dollar Tree / Family Dollar
  Roebuck, SC   (b)     494       418                   494       418       912       (51   2013   6/28/2019   10 to 25 Years
Dollar Tree / Family Dollar
  Camden, SC   (b)     222       745                   222       745       967       (47   2013   6/28/2019   11 to 36 Years
Dollar Tree / Family Dollar
  N. Charleston, SC   (b)     552       600                   552       600       1,152       (48   2013   6/28/2019   10 to 30 Years
Dollar Tree / Family Dollar
  Tyler, TX   (b)     416       609                   416       609       1,025       (54   2003   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar
  La Feria, TX   (b)     601       647                   601       647       1,248       (52   2001   6/28/2019   10 to 29 Years
Dollar Tree / Family Dollar
  Falfurrias, TX   (b)     117       916                   117       916       1,033       (83   1995   6/28/2019   7 to 22 Years
Dollar Tree / Family Dollar
  Olmito, TX   (b)     271       841                   271       841       1,112       (54   2013   6/28/2019   14 to 32 Years
Dollar Tree / Family Dollar
  Fort Davis, TX   (b)     202       785                   202       785       987       (54   2014   6/28/2019   12 to 33 Years
 
14
8

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Dollar Tree / Family Dollar
  Poteet, TX   (b)     253       376                   253       376       629       (69   1995   6/28/2019   3 to 25 Years
Dollar Tree / Family Dollar
  Camp Wood, TX   (b)     207       781                   207       781       988       (52   2014   6/28/2019   15 to 33 Years
Dollar Tree / Family Dollar
  Hallsville, TX   (b)     154       334                   154       334       488       (42   2000   6/28/2019   7 to 25 Years
Dollar Tree / Family Dollar
  San Angelo, TX   (b)     116       621                   116       621       737       (53   2000   6/28/2019   8 to 25 Years
Dollar Tree / Family Dollar
  Brownfield, TX   (b)     205       613                   205       613       818       (51   2001   6/28/2019   10 to 26 Years
Dollar Tree / Family Dollar (f)
  Lakewood, OH   (b)     522       2,053             (20     522       2,033       2,555       (502   1996   7/17/2013   9 to 35 Years
Drive Time
  Independence, MO   (b)     1,058       1,297                   1,058       1,297       2,355       (928   1968   11/25/2014   4 to 15 Years
Drive Time
  Gladstone, MO   (b)     1,100       774                   1,100       774       1,874       (285   2005   3/11/2015   4 to 40 Years
Duluth Trading Co.
  Greensboro, NC   (a)     2,776       3,990             367       2,776       4,357       7,133       (973   2007   7/17/2013   10 to 47 Years
Eddie Merlot’s
  Burr Ridge, IL   (b)     1,184       2,776       (885     (2,079     299       697       996       (29   1997   11/25/2019   6 to
 
22 Years
El Chico
  Tulsa, OK   (b)     1,337       61       (844     (39     493       22       515       (8   1976   11/25/2019   6 to 14 Years
Emagine Theaters
  Lakeville, MN   (b)     2,843       2,843       (419     3,070       2,424       5,913       8,337       (1,152   1998   7/29/2016   7 to 30 Years
Emagine Theaters
  Rogers, MN   (b)     2,337       2,384             1,983       2,337       4,367       6,704       (1,007   2006   7/29/2016   5 to 30 Years
Emagine Theaters
  White Bear Township, MN   (b)     2,773       5,476             4,164       2,773       9,640       12,413       (2,104   1995   7/29/2016   5 to 20 Years
Emagine Theaters
  Monticello, MN   (b)     1,161       3,155             3,368       1,161       6,523       7,684       (1,087   2004   7/29/2016   7 to 30 Years
Emagine Theaters
  Plymouth, MN   (b)     2,516       4,089             2,450       2,516       6,539       9,055       (1,082   1988   7/29/2016   4 to 30 Years
Emagine Theaters
  Waconia, MN   (b)     249       1,464             1,731       249       3,195       3,444       (504   1989   7/29/2016   6 to 20 Years
Emagine Theaters
  East Bethel, MN   (b)     545       1,768             2,445       545       4,213       4,758       (844   1990   7/29/2016   5 to 20 Years
Emagine Theaters
  Delano, MN   (b)     397       1,052                   397       1,052       1,449       (333   1984   7/29/2016   3 to 20 Years
Emagine Theaters
  Eagan, MN   (b)     3,106       4,963             4,000       3,106       8,963       12,069       (622   1998   5/1/2019   10 to 36 Years
Emagine Theaters
  Saginaw, MI   (b)     2,167       3,122             12       2,167       3,134       5,301       (252   2013   11/25/2019   9 to 36 Years
Emagine Theaters
  Batavia, IL   (b)     5,127       836             12       5,127       848       5,975       (245   1995   11/25/2019   5 to 25 Years
Emagine Theaters
  Noblesville, IN   (b)     2,523       4,184             13       2,523       4,197       6,720       (219   2008   11/25/2019   7 to 33 Years
Emagine Theaters
  Portage, IN   (b)     5,385       1,088             12       5,385       1,100       6,485       (306   2007   11/25/2019   6 to 32 Years
Exceptional Health
  Livingston, TX   (b)     1,505       7,616             1,032       1,505       8,648       10,153       (1,072   2014   3/30/2016   16 to 40 Years
Exceptional Health
  Garland, TX   (b)     1,256       4,516                   1,256       4,516       5,772       (552   2016   3/30/2016   17 to 50 Years
Exceptional Health
  Harlingen, TX   (b)     1,734       520             5,616       1,734       6,136       7,870       (492   2016   12/1/2016   49 to 50 Years
Family Fare Supermarket
  Omaha, NE   (b)     2,198       3,328                   2,198       3,328       5,526       (1,540   1982   12/17/2013   4 to 20 Years
Family Medical Center
  Jacksonville, FL   (b)     815       1,606                   815       1,606       2,421       (457   1977   8/18/2014   6 to 30 Years
Family Medical Center
  Middleburg, FL   (b)     521       2,589             65       521       2,654       3,175       (753   1988   8/18/2014   7 to 30 Years
Fazoli’s
  Blue Springs, MO   (b)     688       119       101       (119     789             789           (e)   8/27/2009   (e)
Fazoli’s
  Lees Summit, MO   (b)     628                         628             628           (e)   11/25/2019   (e)
Fazoli’s
  Fort Wayne, IN   (b)     769       136                   769       136       905       (27   1982   11/25/2019   7 to 18 Years
FedEx
  Peoria, IL   (b)     953       1,917       596       182       1,549       2,099       3,648       (898   1996   7/17/2013   3 to 30 Years
 
14
9

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
FedEx
  Madison, AL   (a)     5,115       6,701                   5,115       6,701       11,816       (3,446   2008   7/17/2013   10 to 38 Years
FedEx
  Baton Rouge, LA   (b)     2,898       8,024                   2,898       8,024       10,922       (2,298   2008   7/17/2013   9 to 43 Years
FedEx
  Oak Park, MI   (b)     16,713       19,718             38       16,713       19,756       36,469       (3,552   2016   6/26/2017   14 to 40 Years
FedEx
  Anniston, AL   (b)     2,345       10,239                   2,345       10,239       12,584       (97   2014   9/25/2020   8 to 44 Years
FedEx
  Pearl, MS   (b)     5,307       21,063                   5,307       21,063       26,370       (213   2017   9/29/2020   6 to 44 Years
Ferguson Enterprises
  Shallotte, NC   (a)     705       1,794                   705       1,794       2,499       (716   2006   7/17/2013   10 to 30 Years
Ferguson Enterprises
  Salisbury, MD   (b)     4,210       6,613                   4,210       6,613       10,823       (3,622   2007   7/17/2013   10 to 27 Years
Ferguson Enterprises
  Powhatan, VA   (b)     4,342       2,963                   4,342       2,963       7,305       (2,736   2007   7/17/2013   10 to 31 Years
Ferguson Enterprises
  Ocala, FL   (b)     2,260       4,709                   2,260       4,709       6,969       (1,812   2006   7/17/2013   8 to 46 Years
Ferguson Enterprises
  Front Royal, VA   (a)     7,257       35,711                   7,257       35,711       42,968       (12,891   2007   7/17/2013   9 to 34 Years
Ferguson Enterprises
  Cohasset, MN   (a)     334       1,134                   334       1,134       1,468       (511   2007   7/17/2013   10 to 26 Years
Ferguson Enterprises
  Auburn, AL   (a)     884       1,530                   884       1,530       2,414       (596   2007   7/17/2013   10 to 32 Years
FHE
  Fruita, CO   (b)     1,596       9,361             11       1,596       9,372       10,968       (413   2019   6/28/2019   12 to 45 Years
FHE
  Fruita, CO   (b)     1,640       4,920                   1,640       4,920       6,560       (291   2007   6/28/2019   10 to 36 Years
Fiesta Mart (f)
  Dallas, TX   (b)     3,975                         3,975             3,975           (e)   7/17/2013   (e)
Fire King
  New Albany, IN   (b)     941       5,078             65       941       5,143       6,084       (582   1977   12/20/2019   8 to 30 Years
Food City
  Blairsville, GA   (b)     1,652       3,102                   1,652       3,102       4,754       (992   2001   9/30/2014   10 to 30 Years
Food City
  Chattanooga, TN   (b)     1,817       5,281                   1,817       5,281       7,098       (1,458   1969   9/30/2014   10 to 30 Years
Food City
  Dayton, TN   (b)     1,122       6,767                   1,122       6,767       7,889       (1,420   1999   9/30/2014   10 to 40 Years
Fox Rehabilitation Services
  Cherry Hill, NJ   (b)     4,078       6,076                   4,078       6,076       10,154       (1,356   1998   11/23/2016   9 to 30 Years
Freddy’s Frozen Custard & Steakburgers
  Sedalia, MO   (b)     594       1,196                   594       1,196       1,790       (85   2016   6/28/2019   8 to 34 Years
Fresenius Medical Care
  Elizabethton, TN   (b)     482       1,139                   482       1,139       1,621       (366   2008   8/18/2014   6 to 30 Years
Fresenius Medical Care
  Fairlea, WV   (b)     298       1,280                   298       1,280       1,578       (372   2009   8/18/2014   10 to 40 Years
Gardner School
  Nashville, TN   (b)     2,461       1,427                   2,461       1,427       3,888       (292   1976   3/27/2015   15 to 40 Years
Georgia Theatre
  Danville, VA   (b)     1,349       6,406                   1,349       6,406       7,755       (1,229   2002   12/30/2014   15 to 40 Years
Georgia Theatre
  Hinesville, GA   (b)     2,049       5,216                   2,049       5,216       7,265       (1,026   2001   12/30/2014   15 to 40 Years
Georgia Theatre
  Valdosta, GA   (b)     3,038       13,801                   3,038       13,801       16,839       (2,450   2001   12/30/2014   15 to 40 Years
Georgia Theatre
  Warner Robins, GA   (b)     2,598       8,324                   2,598       8,324       10,922       (1,592   2010   12/30/2014   15 to 40 Years
Golden Corral
  Albuquerque, NM   (b)     1,473       2,947                   1,473       2,947       4,420       (1,237   2011   7/17/2013   10 to 33 Years
Golden Corral
  Decatur, AL   (b)     1,157       1,725                   1,157       1,725       2,882       (655   2004   7/17/2013   10 to 30 Years
Golden Corral
  Florence, AL   (b)     794       1,742                   794       1,742       2,536       (633   1995   7/17/2013   8 to 27 Years
Golden Corral
  Fort Smith, AR   (b)     667       2,862                   667       2,862       3,529       (206   1993   11/25/2019   5 to 20 Years
Golden Corral
  Branson, MO   (b)     1,182       2,668                   1,182       2,668       3,850       (172   1994   11/25/2019   5 to 25 Years
Golden Corral
  Springfield, MO   (b)     2,499       1,239                   2,499       1,239       3,738       (108   1993   11/25/2019   5 to 25 Years
 
1
50

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Golden Corral
  North Little Rock, AR   (b)     1,166       2,138                   1,166       2,138       3,304       (141   1993   11/25/2019   5 to 25 Years
Gourmet Foods
  Los Angeles, CA   (b)     4,099       5,354                   4,099       5,354       9,453       (279   1958   10/11/2019   8 to 26 Years
Gourmet Foods
  Hayward, CA   (b)     2,125       3,015                   2,125       3,015       5,140       (112   1986   10/11/2019   12 to 35 Years
GQT Riverview 14 GDX
  Gibsonton, FL   (b)     4,970       4,014             8,907       4,970       12,921       17,891       (1,511   2016   11/5/2015   12 to 50 Years
Grease Monkey
  Moultrie, GA   (b)     179       271                   179       271       450       (240   1983   9/7/2007   15 to 20 Years
Grease Monkey
  Spanish Fort, AL   (b)     563       607                   563       607       1,170       (435   1993   9/7/2007   15 to 30 Years
Grease Monkey
  Montgomery, AL   (b)     241       628                   241       628       869       (339   1997   9/7/2007   15 to 30 Years
Grease Monkey
  Pensacola, FL   (b)     238       564                   238       564       802       (308   1994   9/7/2007   15 to 30 Years
Grease Monkey
  Montgomery, AL   (b)     303       636                   303       636       939       (353   1996   9/7/2007   15 to
 
30 Years
Grease Monkey
  Pensacola, FL   (b)     148       459                   148       459       607       (245   1972   9/7/2007   15 to 30 Years
Grease Monkey
  Marianna, FL   (b)     283       452                   283       452       735       (240   1994   9/7/2007   15 to 40 Years
Grease Monkey
  Albany, GA   (b)     242       572                   242       572       814       (243   1982   9/7/2007   15 to 40 Years
Grease Monkey
  Pensacola, FL   (b)     104       333                   104       333       437       (195   1968   9/7/2007   15 to 30 Years
Grease Monkey
  Mobile, AL   (b)     89       501                   89       501       590       (261   1982   11/30/2007   15 to 30 Years
Grease Monkey
  Albany, GA   (b)     281       575                   281       575       856       (351   1997   9/7/2007   15 to 30 Years
Grease Monkey
  Gulf Breeze, FL   (b)     296       457                   296       457       753       (249   1993   9/7/2007   15 to 30 Years
Grease Monkey
  Valdosta, GA   (b)     376       576                   376       576       952       (340   1996   11/30/2007   15 to 30 Years
Grease Monkey
  Montgomery, AL   (b)     275       528                   275       528       803       (317   1988   9/7/2007   15 to 30 Years
Grease Monkey
  Pensacola, FL   (b)     195       569                   195       569       764       (318   1983   9/7/2007   15 to 30 Years
Grease Monkey
  Opelika, AL   (b)     503       628                   503       628       1,131       (392   1995   9/7/2007   15 to 30 Years
Grease Monkey
  Auburn, AL   (b)     676       647                   676       647       1,323       (418   1995   9/7/2007   15 to 30 Years
Grease Monkey
  Ocean Springs, MS   (b)     145       186                   145       186       331       (67   1988   7/17/2013   15 to
 
30 Years
Grease Monkey
  Montgomery, AL   (b)     398       626                   398       626       1,024       (370   1997   9/7/2007   15 to 30 Years
Grease Monkey
  Niceville, FL   (b)     458       454                   458       454       912       (215   1996   9/7/2007   15 to 40 Years
Grease Monkey
  Montgomery, AL   (b)     422       857                   422       857       1,279       (466   1992   9/7/2007   15 to 30 Years
Grease Monkey
  Mobile, AL   (b)     157       508                   157       508       665       (275   1982   9/7/2007   15 to 30 Years
Grease Monkey
  Dothan, AL   (b)     162       659                   162       659       821       (346   1996   9/7/2007   15 to 30 Years
Grease Monkey
  Pensacola, FL   (b)     150       575                   150       575       725       (317   1986   9/7/2007   15 to
 
30 Years
Grease Monkey
  Crestview, FL   (b)     544       743                   544       743       1,287       (398   1975   9/7/2007   15 to 30 Years
Grease Monkey
  Panama City, FL   (b)     378       252                   378       252       630       (115   1997   7/17/2013   15 to 30 Years
Grease Monkey
  Milton, FL   (b)     137       577                   137       577       714       (306   1986   9/7/2007   15 to 30 Years
Grease Monkey
  Wetumpka, AL   (b)     224       437                   224       437       661       (35   1995   11/25/2019   6 to 17 Years
Grease Monkey
  Waycross, GA   (b)     207       499                   207       499       706       (33   1998   11/25/2019   10 to
 
20 Years
H&E Equipment Services
  Corpus Christi, TX   (b)     1,790       1,267                   1,790       1,267       3,057       (723   2014   9/30/2014   11 to
 
30 Years
Hardee’s
  Paxton, IL   (b)     319       529                   319       529       848       (66   1986   11/25/2019   8 to 15 Years
Hardee’s
  Mayfield, KY   (b)     266       918                   266       918       1,184       (81   1986   11/25/2019   7 to 15 Years
Hardee’s
  Kansas City, MO   (b)     482       640                   482       640       1,122       (64   1979   11/25/2019   5 to 15 Years
 
1
51

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Hardee’s
  Kansas City, KS   (b)     208       803                   208       803       1,011       (73   1980   11/25/2019   7 to 15 Years
Hardee’s
  Columbia, MO   (b)     714       345                   714       345       1,059       (37   1985   11/25/2019   10 to 15 Years
Hardee’s
  Trenton, MO   (b)     229       931                   229       931       1,160       (75   1976   11/25/2019   10 to 15 Years
Hardee’s
  Independence, MO   (b)     321       607                   321       607       928       (58   1979   11/25/2019   7 to 15 Years
Hardee’s
  Emporia, KS   (b)     296       1,015                   296       1,015       1,311       (93   1969   11/25/2019   7 to 15 Years
Hardee’s
  Lees Summit, MO   (b)     459       705                   459       705       1,164       (66   1985   11/25/2019   11 to 15 Years
Hardee’s
  Harrisonville, MO   (b)     268       769       (180     (521     88       248       336       (6   1981   11/25/2019   7 to 14 Years
Hardee’s
  Rolla, MO   (b)     336       654                   336       654       990       (60   1978   11/25/2019   7 to 15 Years
Hardee’s
  Johnson City, TN   (b)     718       450                   718       450       1,168       (329   1983   12/21/2012   15 to 20 Years
Hardee’s
  Buckhannon, WV   (b)     438       529                   438       529       967       (283   1978   12/21/2012   15 to 20 Years
Hardee’s
  Bristol, VA   (b)     369       564                   369       564       933       (304   1991   12/21/2012   15 to 20 Years
Hardee’s
  Mount Carmel, TN   (b)     499       536                   499       536       1,035       (260   1988   12/21/2012   15 to 30 Years
Hardee’s
  Waynesburg, PA   (b)     323       918                   323       918       1,241       (353   1982   12/21/2012   15 to 30 Years
Hardee’s
  Bristol, VA   (b)     492       366                   492       366       858       (271   1982   12/21/2012   15 to 20 Years
Hardee’s
  Rogersville, TN   (b)     384       964                   384       964       1,348       (366   1986   12/21/2012   15 to 30 Years
Hardee’s
  South Charleston, WV   (b)     524       541                   524       541       1,065       (268   1993   12/21/2012   15 to 20 Years
Hardee’s
  So. Parkersburg, WV   (b)     383       404                   383       404       787       (221   1986   12/21/2012   15 to 20 Years
Hardee’s
  Weston, WV   (b)     158       695                   158       695       853       (237   1981   12/21/2012   15 to 30 Years
Hardee’s
  Kingwood, WV   (b)     618       677                   618       677       1,295       (366   1979   12/21/2012   15 to 20 Years
Hardee’s
  Kingsport, TN   (b)     384       877                   384       877       1,261       (336   1992   12/21/2012   15 to 30 Years
Hardee’s
  Bristol, TN   (b)     474       282                   474       282       756       (285   1985   12/21/2012   10 to 15 Years
Hardee’s
  Elizabethton, TN   (b)     735       278                   735       278       1,013       (203   1971   12/21/2012   15 to 20 Years
Hardee’s
  Jonesborough, TN   (b)     576       329                   576       329       905       (217   1987   12/21/2012   15 to 20 Years
Hardee’s
  Parkersburg, WV   (b)     457       309                   457       309       766       (326   1999   12/21/2012   10 to 15 Years
Hardee’s
  Philippi, WV   (b)     405       232                   405       232       637       (266   1986   12/21/2012   10 to 15 Years
Hardee’s
  Normal, IL   (b)     394       240                   394       240       634       (244   1980   12/21/2012   10 to 15 Years
Hardee’s
  Peoria, IL   (b)     383       270                   383       270       653       (282   1980   12/21/2012   10 to 15 Years
Hardee’s
  Peoria, IL   (b)     282       435                   282       435       717       (246   1980   12/21/2012   15 to 20 Years
Hardee’s
  Havana, IL   (b)     439       297                   439       297       736       (368   1980   12/21/2012   10 to 15 Years
Hardee’s
  Eureka, IL   (b)     307       338                   307       338       645       (382   1980   12/21/2012   10 to 15 Years
Hardee’s
  Fort Madison, IA   (b)     191       620                   191       620       811       (229   1980   12/21/2012   15 to 30 Years
Hardee’s
  Washington, IL   (b)     264       460                   264       460       724       (255   1980   12/21/2012   15 to 20 Years
Hardee’s
  Bartonville, IL   (b)     410       856                   410       856       1,266       (357   1980   12/21/2012   15 to 30 Years
Hartford Provision Company
  South Windsor, CT   (b)     1,590       6,774             632       1,590       7,406       8,996       (2,229   1982   5/5/2015   7 to 20 Years
Hatch Stamping
  Chelsea, MI   (b)     858       1,999                   858       1,999       2,857       (213   1975   6/17/2019   6 to 21 Years
Hatch Stamping
  Spring Arbor, MI   (b)     338       1,385                   338       1,385       1,723       (115   2001   6/17/2019   6 to 25 Years
Hatch Stamping
  Chelsea, MI   (b)     1,215       6,321                   1,215       6,321       7,536       (531   1990   6/17/2019   8 to 22 Years
 
1
52

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Havana Farm and Home Supply
  Havana, IL   (b)     526       813             94       526       907       1,433       (577   2000   5/31/2006   15
 
to 30
 
Years
Health Point Family Medicine
  Franklin, TX   (b)     159       1,124             29       159       1,153       1,312       (273   2012   8/18/2014   4
 
to 40
 
Years
Hobby Lobby (f)
  Douglasville, GA   (b)     2,612       4,840             99       2,612       4,939       7,551       (2,233   2006   7/17/2013   4
 
to 39
 
Years
Home Depot
  Lakewood, CO   (a)     3,822                         3,822             3,822           (e)   7/17/2013   (e)
Home Depot
  Colma, CA   (b)     21,065       13,597             481       21,065       14,078       35,143       (4,020   1995   7/17/2013   2
 
to 33
 
Years
Home Depot
  Memphis, TN   (b)     3,777       10,303             43       3,777       10,346       14,123       (1,782   1996   2/28/2017   9
 
to 30
 
Years
Home Depot
  Highland Heights, OH   (b)     4,897       11,272             43       4,897       11,315       16,212       (1,942   1995   2/21/2017   3
 
to 30
 
Years
Home Depot
  Tempe, AZ   (b)     7,417       9,795             173       7,417       9,968       17,385       (2,162   1978   5/12/2017   10
 
to 30
 
Years
Home Depot
  Broadview, IL   (b)     4,904       7,316                   4,904       7,316       12,220       (2,828   1994   7/17/2013   9
 t
o 30
 
Years
Home Depot (f)
  Bedford Park, IL   (a)     10,242       11,839                   10,242       11,839       22,081       (5,978   1993   7/17/2013   7
 
to 20
 
Years
Hy-Vee Food Store (f)
  Bethany, MO   (b)     648       379                   648       379       1,027       (455   1974   5/31/2006   15
 
to 20
 
Years
IBM
  Greece, NY   (b)     1,419       20,548             (11,004     1,419       9,544       10,963       (1,014   1989   8/2/2017   10
 
to 40
 
Years
IBM
  Columbus, OH   (b)     3,154       19,715             12,816       3,154       32,531       35,685       (4,748   1989   8/2/2017   5
 
to 30
 
Years
In-Shape
  Manteca, CA   (b)     796       2,062             2,244       796       4,306       5,102       (604   2001   9/4/2015   15
 
to 30
 
Years
In-Shape
  Modesto, CA   (b)     2,350       5,923                   2,350       5,923       8,273       (1,697   1964   12/5/2014   10
 
to 30
 
Years
Insurance Auto Auction
  Fargo, ND   (b)     3,006       184                   3,006       184       3,190       (47   2012   9/11/2018   11
 
to 22
 
Years
Insurance Auto Auction
  Springfield, NE   (b)     6,801       1,102                   6,801       1,102       7,903       (727   2012   3/5/2020   7
 
to 32
 
Years
Insurance Auto Auction
  Lennox, SD   (b)     5,934       1,876                   5,934       1,876       7,810       (43   2020   11/30/2020   9
 
to 35
 
Years
Interstate Resources
  New Castle, PA   (b)     1,084       5,507                   1,084       5,507       6,591       (2,087   1999   7/17/2013   8
 
to 26
 
Years
J. Jill
  Tilton, NH   (a)     7,420       19,608                   7,420       19,608       27,028       (9,256   1998   7/17/2013   8
 
to 25
 
Years
Jiffy Lube
  Sarasota, FL   (b)     386       312             141       386       453       839       (223   1987   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Largo, FL   (b)     416       493             111       416       604       1,020       (262   1989   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Bonita Springs, FL   (b)     582       312             101       582       413       995       (205   1990   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Clearwater, FL   (b)     463       443             131       463       574       1,037       (258   1989   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Naples, FL   (b)     333       302             121       333       423       756       (198   1990   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Sarasota, FL   (b)     278       312             131       278       443       721       (201   1987   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Bradenton, FL   (b)     594       493             222       594       715       1,309       (367   1988   3/19/2013   10
 
to 30
 
Years
Jiffy Lube
  Fort Myers, FL   (b)     555       312             131       555       443       998       (230   1990   3/19/2013   10
 
to 30
 
Years
Jo-Ann’s
  Reading, PA   (b)     449       3,222                   449       3,222       3,671       (615   1998   7/17/2013   8 to 40 Years
Jo-Ann’s
  Alpharetta, GA   (b)     2,819       3,139                   2,819       3,139       5,958       (792   2000   7/17/2013   5 to 43 Years
Jo-Ann’s (f)
  Independence, MO   (a)     2,157       2,597                   2,157       2,597       4,754       (1,375   1999   7/17/2013   7 to 21 Years
Joe’s Crab Shack
  Colorado Springs, CO   (b)     882       612                   882       612       1,494       (54   1989   11/25/2019   3 to 20 Years
KFC
  Milan, IL   (b)     161       533                   161       533       694       (189   1997   10/3/2011   15
 
to 30
 
Years
KFC
  Davenport, IA   (b)     441       646                   441       646       1,087       (291   2002   10/3/2011   15
 
to 30 Years
KFC
  Independence, MO   (b)     396       1,074                   396       1,074       1,470       (422   1984   10/3/2011   15
 
to 30
 
Years
KFC
  Kansas City, KS   (b)     594       904                   594       904       1,498       (376   1999   10/3/2011   15
 
to 30
 
Years
KFC
  La Vista, NE   (b)     499       664                   499       664       1,163       (254   1992   10/3/2011   15
 
to 30
 
Years
 
15
3

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
KFC
  Calhoun, GA   (b)     503       713                   503       713       1,216       (270   1988   2/2/2012   15 to 30 Years
KFC
  Covington, GA   (b)     526       665                   526       665       1,191       (238   2001   2/2/2012   15 to 30 Years
KFC
  Decatur, GA   (b)     677       539                   677       539       1,216       (199   1989   2/2/2012   15 to 30 Years
KFC
  Hampton, GA   (b)     568       648                   568       648       1,216       (233   2002   2/2/2012   15 to 30 Years
KFC
  Jackson, GA   (b)     467       729                   467       729       1,196       (306   1992   2/2/2012   15 to 30 Years
KFC
  Morrow, GA   (b)     530       568                   530       568       1,098       (181   2006   2/2/2012   15 to 40 Years
KFC
  Stockbridge, GA   (b)     388       353                   388       353       741       (132   2001   2/2/2012   15 to 30 Years
KFC
  Stone Mountain, GA   (b)     379       487                   379       487       866       (173   1986   2/2/2012   15 to 30 Years
KFC
  Roswell, GA   (b)     755       683                   755       683       1,438       (47   2006   11/25/2019   10 to 22 Years
KFC
  Kingston, PA   (b)     521       635                   521       635       1,156       (163   1978   11/18/2014   15 to 30 Years
KFC
  Bloomsburg, PA   (b)     698       823                   698       823       1,521       (234   1993   11/18/2014   15 to 30 Years
KFC
  Williamsport, PA   (b)     864       979                   864       979       1,843       (253   1966   11/18/2014   15 to 30 Years
KFC
  O’Fallon, MO   (b)     539       380       265       (55     804       325       1,129           2016   12/23/2020   12 to 32 Years
King’s Daughters Medical Center
  Grayson, KY   (b)     658       3,171                   658       3,171       3,829       (752   2013   8/18/2014   9 to 40 Years
Kiolbassa
  San Antonio, TX   (b)     1,324       1,837                   1,324       1,837       3,161       (53   2004   5/7/2020   8 to 30 Years
Kiolbassa
  San Antonio, TX   (b)     2,764       7,268                   2,764       7,268       10,032       (181   2007   5/7/2020   8 to 29 Years
Kohl’s
  Wichita, KS   (b)     2,163       7,036             242       2,163       7,278       9,441       (2,223   1996   7/17/2013   8 to 36 Years
Kohl’s
  Lake Zurich, IL   (b)     4,860       6,935                   4,860       6,935       11,795       (2,767   2000   7/17/2013   7 to 32 Years
Kohl’s
  Grand Forks, ND   (b)     1,516       10,008                   1,516       10,008       11,524       (2,134   2006   7/17/2013   9 to 46 Years
Kohl’s
  Tilton, NH   (b)     3,959                         3,959             3,959           (e)   7/17/2013   (e)
Kohl’s
  Olathe, KS   (b)     3,505       5,847             322       3,505       6,169       9,674       (2,197   1995   7/17/2013   9 to 35 Years
Kohl’s
  Sherwood, AR   (b)     2,300       5,995                   2,300       5,995       8,295       (1,815   2003   2/23/2015   8 to 30 Years
Kohl’s
  Gilbert, AZ   (b)     4,936       4,318             2       4,936       4,320       9,256       (757   2004   8/6/2018   5 to 24 Years
Kohl’s
  Findlay, OH   (b)     2,030       4,971                   2,030       4,971       7,001       (458   1995   6/19/2019   5 to 26 Years
Kohl’s
  Noblesville, IN   (b)     1,674       5,073                   1,674       5,073       6,747       (397   2002   9/20/2019   6 to 25 Years
Kohl’s
  Chillicothe, OH   (b)     1,118       4,922       200             1,318       4,922       6,240       (350   2002   9/20/2019   5 to 24 Years
Kohl’s
  Dayton, OH   (b)     3,468       4,582                   3,468       4,582       8,050       (412   1994   9/20/2019   5 to 20 Years
Kohl’s
  Lansing, MI   (b)     3,484       3,826                   3,484       3,826       7,310           1999   12/18/2020   6 to 23 Years
Kroger
  LaGrange, GA   (a)     972       8,435                   972       8,435       9,407       (2,902   1998   7/17/2013   4 to 25 Years
LA Fitness
  Brooklyn Park, MN   (b)     3,176       7,771                   3,176       7,771       10,947       (2,357   2008   7/17/2013   10 to 35 Years
LA Fitness
  Matteson, IL   (b)     4,587       6,328       244             4,831       6,328       11,159       (2,032   2007   7/17/2013   5 to 34 Years
LA Fitness
  Greenwood, IN   (a)     1,973       9,764       40             2,013       9,764       11,777       (2,190   2007   7/17/2013   5 to 42 Years
LA Fitness
  League City, TX   (a)     2,514       6,767                   2,514       6,767       9,281       (1,676   2008   7/17/2013   10 to 42 Years
LA Fitness
  Naperville, IL   (a)     5,015       6,946                   5,015       6,946       11,961       (1,926   2007   7/17/2013   9 to 38 Years
LA Fitness
  West Chester, OH   (b)     606       9,832                   606       9,832       10,438       (1,934   2009   7/17/2013   7 to 43 Years
LA Fitness
  Fort Washington, PA   (b)     2,120       5,963                   2,120       5,963       8,083       (503   2003   6/26/2019   9 to 34 Years
LA Fitness
  Clinton Township, MI   (b)     3,894       4,957             13       3,894       4,970       8,864       (322   1999   11/25/2019   8 to 38 Years
 
15
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Lamb’s/Ramona Tire
  Hemet, CA   (b)     1,509       2,019                   1,509       2,019       3,528       (90   1975   9/27/2019   10 to 33 Years
Lamb’s/Ramona Tire
  Austin, TX   (b)     1,334       1,030                   1,334       1,030       2,364       (51   2009   9/27/2019   15 to 36 Years
Lamb’s/Ramona Tire
  San Marcos, TX   (b)     853       595                   853       595       1,448       (34   2012   9/27/2019   13 to 34 Years
Lamb’s/Ramona Tire
  Moreno Valley, CA   (b)     639       967                   639       967       1,606       (46   1987   9/27/2019   13 to 33 Years
Lamb’s/Ramona Tire
  Austin, TX   (b)     1,263       613                   1,263       613       1,876       (30   2006   9/27/2019   12 to 36 Years
Lamb’s/Ramona Tire
  Round Rock, TX   (b)     1,975       1,375                   1,975       1,375       3,350       (84   2010   9/27/2019   13 to 37 Years
La-Z-Boy
  Glendale, AZ   (b)     1,395       4,242                   1,395       4,242       5,637       (1,030   2001   7/17/2013   2 to 45 Years
La-Z-Boy
  Newington, CT   (b)     1,778       4,496                   1,778       4,496       6,274       (1,001   2006   7/17/2013   8 to 45 Years
La-Z-Boy
  Kentwood, MI   (b)     1,145       4,085             850       1,145       4,935       6,080       (1,025   1987   7/17/2013   4 to 38 Years
Lee’s Famous Recipe Chicken
  Xenia, OH   (b)     384       288                   384       288       672       (105   1985   8/21/2015   15 to 20 Years
Lee’s Famous Recipe Chicken
  Dayton, OH   (b)     467       237                   467       237       704       (85   1984   8/21/2015   15 to 20 Years
Lee’s Famous Recipe Chicken
  Miamisburg, OH   (b)     139       262                   139       262       401       (88   1970   8/21/2015   15 to 20 Years
Lee’s Famous Recipe Chicken
  Englewood, OH   (b)     235       345                   235       345       580       (87   1988   8/21/2015   15 to 30 Years
Lee’s Famous Recipe Chicken
  Trotwood, OH   (b)     281       220                   281       220       501       (90   1971   8/21/2015   15 to 20 Years
Liberty Oilfield Services
  Gillette, WY   (b)     1,520       4,561                   1,520       4,561       6,081       (1,104   2001   12/30/2014   15 to 40 Years
Liberty Oilfield Services
  Henderson, CO   (b)     3,240       5,720                   3,240       5,720       8,960       (1,274   1977   12/30/2014   15 to 50 Years
Life Time Fitness
  Reston, VA   (b)     9,259       21,308                   9,259       21,308       30,567       (2,229   2003   8/30/2018   6 to 40 Years
Life Time Fitness
  Mansfield, TX   (b)     3,999       19,432                   3,999       19,432       23,431       (1,980   2008   8/30/2018   7 to 39 Years
Life Time Fitness
  Canton, MI   (b)     4,674       18,514                   4,674       18,514       23,188       (2,255   2002   8/30/2018   6 to 33 Years
Life Time Fitness
  Collierville, TN   (b)     5,101       18,546                   5,101       18,546       23,647       (1,789   2009   8/30/2018   7 to 44 Years
Life Time Fitness
  Deerfield Township, OH   (b)     9,259       12,262                   9,259       12,262       21,521       (2,009   2007   8/30/2018   8 to 32 Years
Life Time Fitness
  St. Louis, MO   (b)     9,054       26,952                   9,054       26,952       36,006           2019   12/17/2020   14 to 55 Years
Life Time Fitness
  Northbrook, IL   (b)     10,703       29,304                   10,703       29,304       40,007           2019   12/17/2020   15 to 55 Years
Logan’s Roadhouse
  Johnson City, TN   (b)     1,331       2,304       (793     (1,442     538       862       1,400       (40   1996   7/17/2013   5 to 23 Years
Logan’s Roadhouse
  Trussville, AL   (a)     1,222       1,770       (1,029     (1,499     193       271       464       (50   2007   7/17/2013   9 to 34 Years
Long John Silver’s / A&W
  Houston, TX   (b)     1,329                         1,329             1,329           (e)   7/17/2013   (e)
Lowe’s
  Midland, TX   (b)     5,826       6,633             366       5,826       6,999       12,825       (2,586   1996   7/17/2013   2 to 35 Years
Lowe’s
  Lubbock, TX   (b)     2,644       10,009             480       2,644       10,489       13,133       (3,293   1996   7/17/2013   2 to 36 Years
Lowe’s
  Cincinnati, OH   (b)     6,086       10,984             250       6,086       11,234       17,320       (4,498   1998   7/17/2013   4 to 28 Years
Lowe’s
  Chester, NY   (b)     6,432                         6,432             6,432           (e)   7/17/2013   (e)
Lowe’s
  Tilton, NH   (b)     13,185                         13,185             13,185           (e)   7/17/2013   (e)
Lutheran Health Physicians
  Warren, IN   (b)     220       278       68             288       278       566       (151   2007   8/18/2014   4 to 20 Years
MAACO
  Phoenix, AZ   (b)     834       1,206             291       834       1,497       2,331       (237   1989   3/31/2017   10 to 30 Years
MAACO
  Houston, TX   (b)     1,334       579       (759     (354     575       225       800       (3   1950   3/31/2017   6 to 26 Years
MAACO
  Tuscon, AZ   (b)     333       1,030                   333       1,030       1,363       (184   1999   3/31/2017   10 to 30 Years
Mac Papers
  Jacksonville, FL   (b)     873       7,095                   873       7,095       7,968       (162   1990   3/12/2020   9 to 41 Years
Mac Papers
  Jacksonville, FL   (b)     873       3,938                   873       3,938       4,811       (119   1956   3/12/2020   7 to 32 Years
 
15
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Mac Papers
  Jacksonville, FL   (b)     1,805       9,488                   1,805       9,488       11,293       (300   1970   3/12/2020   9 to 31 Years
Mac Papers
  Miami, FL   (b)     3,471       11,279                   3,471       11,279       14,750       (300   1998   3/12/2020   9 to 34 Years
Mac Papers
  Midway, FL   (b)     350       3,028                   350       3,028       3,378       (94   1999   3/12/2020   9 to 32 Years
Mac Papers
  Orlando, FL   (b)     1,885       7,373                   1,885       7,373       9,258       (226   1999   3/12/2020   9 to 32 Years
Mac Papers
  Riviera Beach, FL   (b)     1,184       3,263                   1,184       3,263       4,447       (101   1994   3/12/2020   9 to 34 Years
Mac Papers
  Tampa, FL   (b)     1,845       4,838                   1,845       4,838       6,683       (175   2009   3/12/2020   10 to 34 Years
Mac Papers
  Lithia Springs, GA   (b)     1,175       8,732                   1,175       8,732       9,907       (240   2007   3/12/2020   8 to 37 Years
Mac Papers
  Harahan, LA   (b)     874       5,430                   874       5,430       6,304       (179   1971   3/12/2020   8 to 28 Years
Mac Papers
  Durham, NC   (b)     1,205       5,961                   1,205       5,961       7,166       (141   2004   3/12/2020   12 to 43 Years
Mac Papers
  Antioch, TN   (b)     1,877       8,127                   1,877       8,127       10,004       (179   2016   3/12/2020   13 to 46 Years
Mac Papers
  Chattanooga, TN   (b)     691       1,865                   691       1,865       2,556       (70   2000   3/12/2020   8 to 30 Years
Mac Papers
  Memphis, TN   (b)     341       1,654                   341       1,654       1,995       (55   2003   3/12/2020   9 to 33 Years
Mac Papers
  Arden, NC   (b)     1,788       2,255                   1,788       2,255       4,043       (56   1999   8/7/2020   6 to 35 Years
Mac Papers
  Greenville, SC   (b)     719       1,995                   719       1,995       2,714       (43   1998   8/7/2020   6 to 34 Years
Mac Papers
  Charlotte, NC   (b)     847       2,050                   847       2,050       2,897       (56   1986   8/7/2020   6 to 22 Years
Mac Papers
  West Columbia, SC   (b)     828       1,472                   828       1,472       2,300       (53   1986   8/7/2020   6 to 22 Years
Main Event
  Fort Worth, TX   (b)     2,468       5,418                   2,468       5,418       7,886       (2,452   2003   9/30/2005   15 to 40 Years
Main Event
  Shenandoah, TX   (b)     2,886       5,763                   2,886       5,763       8,649       (2,589   2004   9/30/2005   15 to 40 Years
Main Event
  Austin, TX   (b)     4,425       8,142                   4,425       8,142       12,567       (3,881   2005   9/30/2005   15 to 40 Years
Main Event
  Lewisville, TX   (b)     2,130       4,630                   2,130       4,630       6,760       (2,125   1998   9/30/2005   15 to 40 Years
Main Event
  Grapevine, TX   (b)     2,554       5,377                   2,554       5,377       7,931       (2,458   2000   9/30/2005   15 to 40 Years
Main Event
  Plano, TX   (b)     3,225       6,302                   3,225       6,302       9,527       (2,806   2001   9/30/2005   15 to 40 Years
Main Event
  Grand Prairie, TX   (b)     1,712             655       8,460       2,367       8,460       10,827       (197   (h)   3/11/2019   (h)
Main Event
  Lutz, FL   (b)     2,919       289       872       7,956       3,791       8,245       12,036       (179   2019   7/18/2019   10 to 45 Years
Malibu Boats
  Merced, CA   (b)     3,456       9,007                   3,456       9,007       12,463       (4,434   1998   3/31/2008   15 to 30 Years
Malibu Boats
  Loudon, TN   (b)     1,188       4,904                   1,188       4,904       6,092       (2,816   1992   3/31/2008   15 to 30 Years
Market Street
  Amarillo, TX   (b)     3,559       4,575                   3,559       4,575       8,134       (1,748   1999   5/23/2005   14 to 40 Years
Market Street
  Wichita Falls, TX   (b)           6,259                         6,259       6,259       (4,348   1997   5/23/2005   13 to 20 Years
Mattress Firm
  Columbia, SC   (b)     596       872             216       596       1,088       1,684       (357   1998   7/17/2013   9 to 45 Years
Michael’s (f)
  Collierville, TN   (b)     1,114       6,726                   1,114       6,726       7,840       (2,186   2002   7/17/2013   9 to 49 Years
Milo’s
  Gardendale, AL   (b)     438       841             55       438       896       1,334       (313   1996   3/29/2013   8 to 29 Years
Milo’s
  Bessemer, AL   (b)     622       983             62       622       1,045       1,667       (367   2002   3/29/2013   8 to 29 Years
Milo’s
  Birmingham, AL   (b)     512       983             63       512       1,046       1,558       (368   2002   3/29/2013   8 to 29 Years
Milo’s
  Birmingham, AL   (b)     321       740             48       321       788       1,109       (273   1977   3/29/2013   8 to 29 Years
Milo’s
  Moody, AL   (b)     518       800             56       518       856       1,374       (312   1997   3/29/2013   8 to 29 Years
Milo’s
  Pelham, AL   (b)     605       923             54       605       977       1,582       (347   1998   3/29/2013   8 to 29 Years
Milo’s
  Trussville, AL   (b)     909       892             55       909       947       1,856       (381   2000   3/29/2013   8 to 29 Years
 
15
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Milo’s
  Calera, AL   (b)     560       912             82       560       994       1,554       (375   2008   3/29/2013   8 to 29 Years
Milo’s
  Homewood, AL   (b)     775                         775             775           (e)   11/25/2019   (e)
Missoula Fresh Market
  Missoula, MT   (b)     2,510       4,714                   2,510       4,714       7,224       (1,100   1999   3/11/2015   15 to 30 Years
Missoula Fresh Market
  Missoula, MT   (b)     3,008       5,168                   3,008       5,168       8,176       (1,164   2008   3/12/2015   15 to 30 Years
Mister Car Wash
  Abilene, TX   (b)     2,733       3,080                   2,733       3,080       5,813       (807   1993   4/7/2015   15 to 30 Years
Mister Car Wash
  Casselberry, FL   (b)     1,042       2,406                   1,042       2,406       3,448       (502   1988   2/9/2016   13 to 30 Years
Mister Car Wash
  Ocoee, FL   (b)     2,128       1,775             18       2,128       1,793       3,921       (419   2009   5/3/2016   17 to 30 Years
Mister Car Wash
  Orlando, FL   (b)     1,629       1,895                   1,629       1,895       3,524       (482   2005   2/9/2016   13 to 30 Years
Mister Car Wash
  Orlando, FL   (b)     2,709       2,728             45       2,709       2,773       5,482       (655   2001   2/9/2016   13 to 30 Years
Mister Car Wash
  Madison, WI   (b)     611       1,775                   611       1,775       2,386       (438   1958   6/30/2015   15 to 30 Years
Mister Car Wash
  Madison, WI   (b)     905       2,728                   905       2,728       3,633       (612   1961   6/30/2015   15 to 30 Years
Mister Car Wash
  Madison, WI   (b)     564       1,623                   564       1,623       2,187       (336   1956   6/30/2015   15 to 30 Years
Mister Car Wash
  Rockford, IL   (b)     705       2,669                   705       2,669       3,374       (554   1959   6/30/2015   15 to 30 Years
Mister Car Wash
  Saint Paul, MN   (b)     5,274       136             67       5,274       203       5,477       (1,596   1966   12/13/2016   12 to 30 Years
Mister Car Wash
  Edgewater, MD   (b)     4,720       1,460                   4,720       1,460       6,180       (500   2005   1/21/2015   15 to 30 Years
Mister Car Wash
  Millersville, MD   (b)     2,250       1,636                   2,250       1,636       3,886       (448   2007   1/21/2015   15 to 30 Years
Mister Car Wash
  Nampa, ID   (b)     3,240       2,343                   3,240       2,343       5,583       (1,249   2010   5/15/2013   15 to 30 Years
Mister Car Wash
  Meridian, ID   (b)     1,923       2,170       536       20       2,459       2,190       4,649       (1,077   2006   5/15/2013   15 to 30 Years
Mister Car Wash
  Boise, ID   (b)     217                         217             217       (15   (e)   5/15/2013   (e)
Mister Car Wash
  Boise, ID   (b)     2,155       2,488                   2,155       2,488       4,643       (1,153   2004   5/15/2013   15 to 30 Years
Mister Car Wash
  Round Rock, TX   (b)     1,167       1,549                   1,167       1,549       2,716       (417   2009   5/7/2015   15 to 30 Years
Mister Car Wash
  Houston, TX   (b)     1,081       2,450                   1,081       2,450       3,531       (181   1991   11/25/2019   3 to 16 Years
Mojo Grill
  Leesburg, FL   (b)     619       236             500       619       736       1,355       (87   1996   10/26/2018   8 to 23 Years
Monterey’s Tex Mex
  Bryan, TX   (b)     818       670                   818       670       1,488       (52   1988   11/25/2019   3 to 23 Years
Mountainside Fitness
  Chandler, AZ   (b)     1,687       2,935             12       1,687       2,947       4,634       (142   2002   11/25/2019   3 to 35 Years
Mr. Clean/Jiffy Lube
  Lawrenceville, GA   (b)     2,315       1,670                   2,315       1,670       3,985       (112   1996   9/11/2019   10 to 30 Years
Mr. Clean/Jiffy Lube
  Canton, GA   (b)     2,649       1,681                   2,649       1,681       4,330       (106   1998   9/11/2019   11 to 30 Years
NextCare Urgent Care
  Round Rock, TX   (b)     271       728                   271       728       999       (167   1985   8/18/2014   8 to 40 Years
Northern Tool & Equipment
  Blaine, MN   (b)     1,728       3,437                   1,728       3,437       5,165       (882   2006   7/17/2013   8 to 43 Years
Off Lease Only
  West Palm Beach, FL   (b)     12,511       9,751                   12,511       9,751       22,262       (148   2016   9/9/2020   17 to 43 Years
Off Lease Only
  North Lauderdale, FL   (b)     21,733       8,680                   21,733       8,680       30,413       (211   1988   9/9/2020   14 to 38 Years
Off Lease Only
  Orlando, FL   (b)     16,901       10,864                   16,901       10,864       27,765       (249   2019   9/9/2020   18 to 44 Years
Office Depot
  Dayton, OH   (b)     710       2,417                   710       2,417       3,127       (556   2005   7/17/2013   8 to 47 Years
Office Depot
  Greenville, MS   (b)     583       2,315             43       583       2,358       2,941       (621   2000   7/17/2013   1 to 35 Years
Office Depot
  Oxford, MS   (b)     1,625       1,024                   1,625       1,024       2,649       (412   2006   7/17/2013   9 to 33 Years
Office Depot
  Enterprise, AL   (b)     675       2,239                   675       2,239       2,914       (560   2006   7/17/2013   8 to 43 Years
Office Depot
  Benton, AR   (b)     1,236       1,926                   1,236       1,926       3,162       (558   2001   7/17/2013   3 to 38 Years
 
15
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Office Depot
  Laurel, MS   (b)     401       2,164             300       401       2,464       2,865       (615   2002   7/17/2013   3 to 35 Years
Office Depot
  Morrisville, NC   (b)     408       2,732                   408       2,732       3,140       (594   2008   7/17/2013   11 to 47 Years
Office Depot
  Balcones Heights, TX   (b)     1,888       2,117                   1,888       2,117       4,005       (551   2009   7/17/2013   11 to 46 Years
Office Depot (f)
  Alcoa, TN   (b)     918       3,170                   918       3,170       4,088       (759   1999   7/17/2013   8 to 40 Years
OfficeMax
  Orangeburg, SC   (b)     621       2,208                   621       2,208       2,829       (517   1999   7/17/2013   12 to 45 Years
Ogden Clinic
  Ogden, UT   (b)     597       2,331                   597       2,331       2,928       (716   1985   8/18/2014   7 to
 
30 Years
Ojos Locos Sports Cantina
  El Paso, TX   (b)     1,725       1,470                   1,725       1,470       3,195       (394   2014   4/15/2015   15 to 30 Years
Old Time Pottery
  Fairview Heights, IL   (b)     1,418       2,383       (506     (1,516     912       867       1,779       (195   1990   7/17/2013   3 to 3 Years
Old Time Pottery
  Foley, AL   (b)     1,240       2,983                   1,240       2,983       4,223       (1,049   1994   5/8/2015   9 to 20 Years
Old Time Pottery
  Murfreesboro, TN   (b)     3,413       6,727                   3,413       6,727       10,140       (2,221   1985   2/25/2015   9 to 20 Years
O’Reilly Auto Parts
  Pea Ridge, AR   (b)     161                         161             161           (e)   11/25/2019   (e)
Panera
  Spartanburg, SC   (b)     1,196       1,671                   1,196       1,671       2,867       (498   1999   7/17/2013   5 to 34 Years
Party City
  Eden Prairie, MN   (b)     3,174       10,118                   3,174       10,118       13,292       (598   1991   6/28/2019   9 to 33 Years
Party City
  Los Lunas, NM   (b)     2,890       9,461                   2,890       9,461       12,351       (475   2015   6/28/2019   14 to 38 Years
Party City
  Chester, NY   (b)     5,785       97,090                   5,785       97,090       102,875       (3,697   2006   6/28/2019   11 to 42 Years
Pawn I
  Caldwell, ID   (b)     470       1,739                   470       1,739       2,209       (243   2009   7/31/2015   15 to 50 Years
Pawn I
  Spokane, WA   (b)     970       1,945                   970       1,945       2,915       (317   1994   7/31/2015   15 to 40 Years
Pep Boys
  West Warwick, RI   (b)     1,323       2,917                   1,323       2,917       4,240       (802   1993   7/17/2013   9 to 41 Years
Pep Boys
  Tamarac, FL   (b)     1,407       2,660                   1,407       2,660       4,067       (687   1997   7/17/2013   7 to 39 Years
Pep Boys
  Lakeland, FL   (b)     1,204       1,917                   1,204       1,917       3,121       (556   1991   7/17/2013   7 to 38 Years
Pep Boys
  El Centro, CA   (b)     1,295       1,504                   1,295       1,504       2,799       (554   1998   7/17/2013   9 to 33 Years
Pep Boys
  Frederick, MD   (b)     1,571       2,529                   1,571       2,529       4,100       (694   1987   7/17/2013   9 to 40 Years
Pep Boys
  Clarksville, IN   (b)     1,055       1,758                   1,055       1,758       2,813       (626   1993   7/17/2013   8 to 30 Years
Pep Boys
  Orem, UT   (b)     1,224       2,132                   1,224       2,132       3,356       (603   1990   7/17/2013   9 to 40 Years
Pep Boys
  Pasadena, TX   (b)     1,224       4,263                   1,224       4,263       5,487       (1,060   1995   7/17/2013   9 to 40 Years
Pep Boys
  Hampton, VA   (b)     1,662       2,974                   1,662       2,974       4,636       (972   1993   7/17/2013   9 to 35 Years
Pep Boys
  Arlington Heights, IL   (b)     1,530       5,354                   1,530       5,354       6,884       (1,346   1995   7/17/2013   9 to 36 Years
Pep Boys
  Albuquerque, NM   (b)     885       2,998                   885       2,998       3,883       (761   1990   7/17/2013   7 to 35 Years
Pep Boys
  Colorado Springs, CO   (b)     1,335       1,587                   1,335       1,587       2,922       (788   1994   7/17/2013   7 to 26 Years
PetSmart
  Chattanooga, TN   (a)     1,689       2,837                   1,689       2,837       4,526       (745   1996   7/17/2013   8 to 40 Years
PetSmart
  Daytona Beach, FL   (a)     775       3,880                   775       3,880       4,655       (869   1996   7/17/2013   8 to 42 Years
PetSmart
  Fredericksburg, VA   (a)     1,783       3,491                   1,783       3,491       5,274       (860   1997   7/17/2013   8 to 44 Years
PetSuites Pet Resort & Spa
  Bradenton, FL   (b)     1,563       2,679                   1,563       2,679       4,242       (174   2018   3/29/2019   19 to 35 Years
Pioneer Seeds
  Maxton, NC   (b)     870       6,961             29       870       6,990       7,860       (912   2016   12/16/2016   9 to 40 Years
Planet Fitness
  Mesquite, TX   (b)     601       1,770                   601       1,770       2,371       (478   1986   1/15/2016   8 to 30 Years
Planet Fitness
  Phoenix, AZ   (b)     642       2,245                   642       2,245       2,887       (556   1988   9/30/2014   14 to 30 Years
Planet Fitness
  Burnsville, MN   (b)     1,461       1,597             22       1,461       1,619       3,080       (529   1978   4/15/2016   8 to 20 Years
 
15
8

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Popeye’s Chicken & Biscuits
  Bartlett, TN   (b)     788       1,160                   788       1,160       1,948       (128   1985   11/25/2019   5 to 12 Years
Popeye’s Chicken & Biscuits
  Memphis, TN   (b)     814       903                   814       903       1,717       (68   2004   11/25/2019   6 to 19 Years
Popeye’s Chicken & Biscuits
  Holly Springs, MS   (b)     225       249                   225       249       474       (31   1998   11/25/2019   6 to 13 Years
Popeye’s Chicken & Biscuits
  Collierville, TN   (b)     670       672                   670       672       1,342       (61   2000   11/25/2019   6 to 15 Years
Popeye’s Chicken & Biscuits
  Nashville, TN   (b)     455       613                   455       613       1,068       (65   1975   11/25/2019   6 to 12 Years
Popeye’s Chicken & Biscuits
  Horn Lake, MS   (b)     217       1,061                   217       1,061       1,278       (142   1994   11/25/2019   4 to 9 Years
Popeye’s Chicken & Biscuits
  Nashville, TN   (b)     624       837                   624       837       1,461       (88   1988   11/25/2019   6 to 12 Years
PriMed Physicians
  Beavercreek, OH   (b)     559       1,420       63       29       622       1,449       2,071       (424   1985   8/18/2014   7 to 40 Years
Progressive Medical Center
  Dunwoody, GA   (b)     1,061       4,556             22       1,061       4,578       5,639       (677   1988   10/27/2016   2 to 40 Years
Rally’s
  Marion, IN   (b)     160       693       (1     (4     159       689       848       (73   1990   11/25/2019   6 to 12 Years
Raymour & Flanigan Furniture
  Horseheads, NY   (b)     1,395       10,923             12       1,395       10,935       12,330       (333   2005   11/25/2019   7 to 43 Years
Raymour & Flanigan Furniture
  Johnson City, NY   (b)     1,430       8,372             13       1,430       8,385       9,815       (378   1978   11/25/2019   7 to 30 Years
Red Lobster
  Winston-Salem, NC  
(b)
    1,707       1,873                   1,707       1,873       3,580       (298   1998   12/22/2016   13 to 40 Years
Red Lobster
  Paducah, KY   (b)     1,485       2,407             69       1,485       2,476       3,961       (384   2013   12/22/2016   13 to 40 Years
Red Lobster
  Monroeville, PA   (b)     1,677       3,508                   1,677       3,508       5,185       (637   2009   12/22/2016   12 to 30 Years
Red Lobster
  Rockford, IL   (b)     1,348       2,842                   1,348       2,842       4,190       (437   1977   12/22/2016   13 to 40 Years
Red Lobster
  Zanesville, OH   (b)     1,088       2,218                   1,088       2,218       3,306       (449   1992   12/22/2016   11 to 30 Years
Red Lobster
  Duluth, GA   (b)     1,913       4,576                   1,913       4,576       6,489       (602   1984   12/22/2016   13 to 40 Years
Red Lobster
  Stillwater, OK   (b)     611       1,447                   611       1,447       2,058       (326   1995   12/23/2014   15 to 30 Years
Red Lobster
  Salina, KS   (b)     764       1,100                   764       1,100       1,864       (334   1994   12/23/2014   15 to 30 Years
Red Lobster
  Albany, GA   (b)     744       1,340                   744       1,340       2,084       (362   1971   12/23/2014   15 to 30 Years
Red Lobster
  Meadville, PA   (b)     652       1,284                   652       1,284       1,936       (395   1991   12/23/2014   15 to 30 Years
Red Lobster
  Aurora, CO   (b)     1,151       1,742                   1,151       1,742       2,893       (380   1974   12/23/2014   15 to 40 Years
Red Lobster
  Tullahoma, TN   (b)     520       886                   520       886       1,406       (223   1996   12/23/2014   15 to 40 Years
Red Lobster
  Bradley, IL   (b)     1,610       1,783                   1,610       1,783       3,393       (536   1991   12/23/2014   15 to 30 Years
Red Lobster
  Bloomington, IL   (b)     662       1,029                   662       1,029       1,691       (283   1975   12/23/2014   15 to 30 Years
Red Lobster
  Monroe, MI   (b)     927       897                   927       897       1,824       (318   1996   12/23/2014   15 to 30 Years
Red Lobster
  Tifton, GA   (b)     642       1,009                   642       1,009       1,651       (242   1995   12/23/2014   15 to 40 Years
Red Lobster
  Adrian, MI   (b)     652       1,233                   652       1,233       1,885       (332   1991   12/23/2014   15 to 30 Years
Red Lobster
  Lewiston, ID   (b)     1,080       866                   1,080       866       1,946       (291   1996   12/23/2014   15 to 30 Years
Red Lobster
  Findlay, OH   (b)     958       1,029                   958       1,029       1,987       (308   1991   12/23/2014   15 to 30 Years
Red Lobster
  Council Bluffs, IA   (b)     1,070       703                   1,070       703       1,773       (230   1995   12/23/2014   15 to 30 Years
Red Lobster
  Columbus, GA   (b)     876       1,243                   876       1,243       2,119       (346   2003   12/23/2014   15 to 30 Years
Red Lobster
  Indianapolis, IN   (b)     418       1,223                   418       1,223       1,641       (265   1992   12/23/2014   15 to 30 Years
Red Lobster
  Oxford, AL   (b)     489       1,212                   489       1,212       1,701       (336   1991   12/23/2014   15 to 30 Years
Red Lobster
  Waterford, MI   (b)     761       1,958                   761       1,958       2,719       (400   1997   2/10/2015   15 to 40 Years
Red Mesa Grill
  Traverse City, MI   (b)     651       1,255                   651       1,255       1,906       (284   2004   11/9/2015   15 to 30 Years
 
15
9

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Red Mesa Grill
  Boyne City, MI   (b)     69       938                   69       938       1,007       (165   1997   11/9/2015   15 to 30 Years
Red Mesa Grill
  Elk Rapids, MI   (b)     227       947                   227       947       1,174       (180   1998   11/9/2015   15 to 30 Years
Regal Cinemas
  Carrollton, GA   (b)     1,879       5,868                   1,879       5,868       7,747       (1,212   2005   12/30/2014   15 to 40 Years
Regal Cinemas
  Dawsonville, GA   (b)     1,859       4,207                   1,859       4,207       6,066       (939   2005   12/30/2014   15 to 40 Years
Regal Cinemas
  Gainesville, GA   (b)     2,278       8,684                   2,278       8,684       10,962       (1,614   1996   12/30/2014   15 to 40 Years
Regal Cinemas
  Woodstock, GA   (b)     2,798       5,057             2,800       2,798       7,857       10,655       (1,535   1997   12/30/2014   15 to 30 Years
Regal Cinemas
  Griffin, GA   (b)     1,239       3,188                   1,239       3,188       4,427       (909   2005   12/30/2014   15 to 30 Years
Regal Cinemas
  Omaha, NE   (b)     2,254       4,249                   2,254       4,249       6,503       (1,207   2006   3/26/2015   12 to 30 Years
Regal Cinemas
  Avon, IN   (b)     3,388       2,967             3,651       3,388       6,618       10,006       (2,226   1995   3/1/2016   4 to 30 Years
Regal Cinemas
  Bowie, MD   (b)     7,138       5,936             23       7,138       5,959       13,097       (1,362   1998   11/23/2016   8 to 40 Years
Renaissance Food
  Houston, TX   (b)     3,203       8,089             324       3,203       8,413       11,616       (328   2016   12/3/2019   11 to 38 Years
Repair One
  Port Orange, FL   (b)     574       1,349                   574       1,349       1,923       (69   1997   11/25/2019   10 to 25 Years
Residence Inn by Marriott
  Cape Canaveral, FL   (b)     4,627       28,368             4,729       4,627       33,097       37,724       (1,523   2006   3/28/2019   11 to 40 Years
Rite Aid
  Wauseon, OH   (b)     1,000       2,034                   1,000       2,034       3,034       (607   2005   7/17/2013   12 to 37 Years
Rite Aid
  Fremont, OH   (b)     504       1,405       (378     (1,053     126       352       478       (67   1998   7/17/2013   4 to 27 Years
Rite Aid
  Defiance, OH   (b)     645       2,452                   645       2,452       3,097       (684   2005   7/17/2013   11 to 38 Years
Rite Aid
  Glassport, PA   (b)     550       2,471                   550       2,471       3,021       (706   2006   7/17/2013   11 to 37 Years
Rite Aid
  Easton, PA   (b)     1,028       3,996                   1,028       3,996       5,024       (974   2006   7/17/2013   12 to 41 Years
Rite Aid
  Plains, PA   (b)     1,502       2,611                   1,502       2,611       4,113       (749   2006   7/17/2013   12 to 37 Years
Rite Aid
  Lima, OH   (b)     568       3,221                   568       3,221       3,789       (760   2005   7/17/2013   12 to 43 Years
Rite Aid
  Fredericksburg, VA   (b)     1,426       2,077                   1,426       2,077       3,503       (607   2006   7/17/2013   14 to 37 Years
Rite Aid
  Vineland, NJ   (b)     1,194       2,766                   1,194       2,766       3,960       (121   1997   7/17/2013   36 to 36 Years
Rite Aid
  Mantua, NJ   (b)     502       1,379                   502       1,379       1,881       (59   1993   7/17/2013   33 to 33 Years
Ross (f)
  Victoria, TX   (b)     2,631       7,710             (326     2,631       7,384       10,015       (1,937   2006   7/17/2013   5 to 43 Years
Ruth’s Chris Steakhouse
  Sarasota, FL   (b)     2,758       412                   2,758       412       3,170       (295   2000   7/17/2013   12 to 25 Years
Ruth’s Chris Steakhouse
  Metairie, LA   (a)     800       3,016                   800       3,016       3,816       (796   1964   7/17/2013   10 to 30 Years
Ryan’s
  Bowling Green, KY   (b)     934       3,135       (579     (1,940     355       1,195       1,550       (203   1997   7/17/2013   10 to 34 Years
Ryan’s
  Lake Charles, LA   (b)     1,619       1,349                   1,619       1,349       2,968       (653   1987   7/17/2013   10 to 24 Years
Ryan’s
  Picayune, MS   (b)     1,250       1,409                   1,250       1,409       2,659       (558   1999   7/17/2013   7 to 29 Years
Ryerson
  Little Rock, AR   (b)     2,393       11,864             31       2,393       11,895       14,288       (663   1994   12/20/2019   9 to 23 Years
Ryerson
  Lancaster, NY   (b)     2,524       12,996       (245     276       2,279       13,272       15,551       (865   2002   12/20/2019   7 to 17 Years
Ryerson
  Lavonia, GA   (b)     1,649       4,659       100       (67     1,749       4,592       6,341       (378   1960   12/20/2019   6 to 21 Years
Ryerson
  Carrollton, TX   (b)     1,931       5,557             31       1,931       5,588       7,519       (371   1981   12/20/2019   6 to 18 Years
Ryerson
  Hilliard, OH   (b)     1,310       3,378             32       1,310       3,410       4,720       (190   1973   12/20/2019   8 to 27 Years
Ryerson
  Pounding Mill, VA   (b)     519       2,785       (33     64       486       2,849       3,335       (199   1982   12/20/2019   6 to 17 Years
Ryerson
  Spokane, WA   (b)     954       3,738             31       954       3,769       4,723       (255   1949   12/20/2019   6 to 17 Years
Ryerson
  Phoenix, AZ   (b)     2,394       1,426       38       (7     2,432       1,419       3,851       (225   1935   12/20/2019   4 to 18 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Ryerson
  Strongsville, OH   (b)     1,114       1,903             32       1,114       1,935       3,049       (119   1990   12/20/2019   11 to 25 Years
Sagebrush
  Tulsa, OK   (b)     795       614                   795       614       1,409       (4   1987   11/23/2020   7 to 21 Years
Sagebrush
  Tulsa, OK   (b)     719       4,145                   719       4,145       4,864       (18   1993   11/23/2020   7 to 23 Years
Saisaki Asian Bistro and Sushi
  Newport News, VA   (b)     1,184       311                   1,184       311       1,495       (409   1995   6/25/2004   10 to 25 Years
Saltgrass
  Plano, TX   (b)     1,934       1,456                   1,934       1,456       3,390       (110   1998   11/25/2019   7 to 20 Years
Same Day Delivery
  Walker, MI   (a)     2,287       4,469       (1,369     (2,277     918       2,192       3,110       (532   2001   7/17/2013   4 to 30 Years
Sam’s Club
  Anderson, SC   (b)     4,770       6,883                   4,770       6,883       11,653       (4,608   1993   7/17/2013   7 to 21 Years
Sam’s Club
(f)
  Littleton, CO   (b)     7,839       9,299                   7,839       9,299       17,138       (5,625   1991   7/17/2013   5 to 17 Years
Serrano’s Mexican Restaurant
  Mesa, AZ   (b)     422       1,002                   422       1,002       1,424       (269   1990   6/14/2013   15 to 40 Years
Serrano’s Mexican Restaurant
  Queen Creek, AZ   (b)     609       1,159                   609       1,159       1,768       (344   2004   6/14/2013   15 to 40 Years
Service King
  Clarksville, TN   (b)     795       1,446                   795       1,446       2,241       (90   2000   11/25/2019   7 to 22 Years
Service King
  Madison, TN   (b)     664       1,911                   664       1,911       2,575       (109   2000   11/25/2019   8 to 23 Years
Service King
  Nashville, TN   (b)     931       1,673                   931       1,673       2,604       (104   2000   11/25/2019   8 to 23 Years
Sheffield Pharmaceuticals
  Norwich, CT   (b)     627       4,767             27       627       4,794       5,421       (849   1975   6/30/2016   4 to 30 Years
Shooters World
  Orlando, FL   (b)     2,650       9,512       390       5,508       3,040       15,020       18,060       (605   2018   1/26/2018   13 to 45 Years
Shooters World
  Tampa, FL   (b)     1,588       6,134                   1,588       6,134       7,722       (1,022   1990   6/5/2015   15 to 40 Years
Shutterfly   Plano, TX   (b)     7,867       24,085                   7,867       24,085       31,952       (264   2020   9/15/2020   10 to 45 Years
Skyline Chili   Fairborn, OH   (b)     701       800                   701       800       1,501       (67   1998   11/25/2019   8 to 18 Years
Skyline Chili   Lewis Center, OH   (b)     736       273                   736       273       1,009       (31   1998   11/25/2019   8 to 18 Years
Slim Chickens   Texarkana, TX   (b)     373       1,011                   373       1,011       1,384       (43   2013   11/25/2019   7 to 32 Years
Slim Chickens   Stillwater, OK   (b)     1,314       1,111                   1,314       1,111       2,425       (279   2015   3/31/2015   15 to 40 Years
Smart & Final   El Cajon, CA   (b)     7,323       10,056                   7,323       10,056       17,379       (2,468   1997   3/16/2015   15 to 30 Years
Smart & Final   Palmdale, CA   (b)     3,849       9,803                   3,849       9,803       13,652       (1,870   2005   3/23/2015   15 to 40 Years
Smokey Bones Barbecue & Grill   Orlando, FL   (b)     2,006       571                   2,006       571       2,577       (429   2002   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Fairview Heights, IL   (b)     1,020       826                   1,020       826       1,846       (679   1972   12/31/2007   15 to 30 Years
Smokey Bones Barbecue & Grill   Springfield, IL   (b)     1,115       772                   1,115       772       1,887       (526   1996   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Warwick, RI   (b)     1,593       1,314                   1,593       1,314       2,907       (782   1990   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Mentor, OH   (b)     873       790                   873       790       1,663       (557   2003   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Bowie, MD   (b)     1,501       615                   1,501       615       2,116       (434   2004   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Melbourne, FL   (b)     2,005       794                   2,005       794       2,799       (619   1986   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Fort Wayne, IN   (b)     1,110       817                   1,110       817       1,927       (624   2003   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Greensboro, NC   (b)     1,009       444                   1,009       444       1,453       (439   2003   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Dayton, OH   (b)     1,026       907                   1,026       907       1,933       (622   2002   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Pittsburgh, PA   (b)     1,481       676                   1,481       676       2,157       (513   2006   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Colonie, NY   (b)     1,322       991       (350     (261     972       730       1,702       (570   1994   12/31/2007   15 to 40 Years
Smokey Bones Barbecue & Grill   Clearwater, FL   (b)     2,226       858                   2,226       858       3,084       (543   2004   12/31/2007   15 to 40 Years
Smoothie King   Memphis, TN   (b)     208       302                   208       302       510       (140   2007   7/17/2013   3 to 24 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Sonic Drive-In   Concord, NC   (b)     855       348                   855       348       1,203       (148   2004   9/17/2013   15 to 30 Years
Sonic Drive-In   Creedmoor, NC   (b)     451       367                   451       367       818       (179   2006   9/17/2013   15 to 30 Years
Sonic Drive-In   Zebulon, NC   (b)     780       395                   780       395       1,175       (204   2006   9/17/2013   15 to 30 Years
Sonic Drive-In   Salisbury, NC   (b)     357       338                   357       338       695       (132   2002   9/17/2013   15 to 30 Years
Sonic Drive-In   Concord, NC   (b)     244       310                   244       310       554       (102   1993   9/17/2013   15 to 30 Years
Sonic Drive-In   Kannapolis, NC   (b)     244       291                   244       291       535       (120   2001   9/17/2013   15 to 30 Years
Sonic Drive-In   Harrisburg, NC   (b)     489       291                   489       291       780       (134   2004   9/17/2013   15 to 30 Years
Sonic Drive-In   Albermarle, NC   (b)     639       310                   639       310       949       (111   1993   9/17/2013   15 to 30 Years
Sonic Drive-In   Siler City, NC   (b)     686       385                   686       385       1,071       (220   2005   9/17/2013   15 to 30 Years
Sonic Drive-In   Raleigh, NC   (b)     639       320                   639       320       959       (173   2008   9/17/2013   15 to 30 Years
Sonic Drive-In   Rolesville, NC   (b)     526       320                   526       320       846       (164   2007   9/17/2013   15 to 30 Years
Sonic Drive-In   South Hill, VA   (b)     564       320                   564       320       884       (182   2007   9/17/2013   15 to 30 Years
Sonic Drive-In   Rockwell, NC   (b)     385       385                   385       385       770       (198   2006   9/17/2013   15 to 30 Years
Sonic Drive-In   Aberdeen, NC   (b)     564       338                   564       338       902       (114   1994   9/17/2013   15 to 30 Years
Sonic Drive-In   D’Iberville, MS   (b)     604       1,171                   604       1,171       1,775       (76   2005   11/25/2019   9 to 20 Years
Sonic Drive-In   Hattiesburg, MS   (b)     839       1,109                   839       1,109       1,948       (67   2010   11/25/2019   9 to 25 Years
Sonic Drive-In   Laurel, MS   (b)     549       803                   549       803       1,352       (79   1993   11/25/2019   7 to 14 Years
Sonic Drive-In   Bay Minette, AL   (b)     551       850                   551       850       1,401       (78   2000   11/25/2019   8 to 15 Years
Sonic Drive-In   Flowood, MS   (b)     340       868                   340       868       1,208       (75   1994   11/25/2019   8 to 14 Years
Sonic Drive-In   Knoxville, TN   (b)     335       155                   335       155       490       (39   1987   11/25/2019   2 to 6 Years
Sonic Drive-In   Celina, TX   (b)     411       199                   411       199       610       (119   2003   7/25/2016   13 to 20 Years
Sonic Drive-In   Gunter, TX   (b)     248       250                   248       250       498       (107   2004   7/25/2016   13 to 20 Years
Sonic Drive-In   Keene, TX   (b)     343       260                   343       260       603       (112   2005   7/25/2016   13 to 30 Years
Sonic Drive-In   Lavon, TX   (b)     404       212                   404       212       616       (127   2003   7/25/2016   13 to 20 Years
Sonic Drive-In   Leonard, TX   (b)     323       465                   323       465       788       (149   2005   7/25/2016   13 to 30 Years
Sonic Drive-In   Little Elm, TX   (b)     620       244                   620       244       864       (139   2001   7/25/2016   13 to 20 Years
Sonic Drive-In   Melissa, TX   (b)     715       609                   715       609       1,324       (198   2004   7/25/2016   13 to 30 Years
Sonic Drive-In   Pilot Point, TX   (b)     446       436                   446       436       882       (160   2000   7/25/2016   13 to 30 Years
Sonic Drive-In   Prosper, TX   (b)     990       435                   990       435       1,425       (181   2004   7/25/2016   13 to 30 Years
Sonic Drive-In   St. Paul, TX   (b)     509       192                   509       192       701       (132   2003   7/25/2016   13 to 20 Years
Sonic Drive-In   Beaumont, TX   (b)     580       284                   580       284       864       (181   2001   8/31/2015   15 to 20 Years
Sonic Drive-In   Port Arthur, TX   (b)     384       266                   384       266       650       (165   2002   8/31/2015   15 to 20 Years
Sonic Drive-In   Beaumont, TX   (b)     777       246                   777       246       1,023       (185   2000   8/31/2015   15 to 20 Years
Sonic Drive-In   Port Arthur, TX   (b)     187       256                   187       256       443       (110   1976   8/31/2015   15 to 20 Years
Sonic Drive-In   Beaumont, TX   (b)     758       325                   758       325       1,083       (194   2007   8/31/2015   15 to 30 Years
Sonic Drive-In   Orange, TX   (b)     541       335                   541       335       876       (171   2007   8/31/2015   15 to 30 Years
Sonic Drive-In   Port Arthur, TX   (b)     403       344                   403       344       747       (183   2004   8/31/2015   15 to 20 Years
Sonny’s BBQ   Orlando, FL   (b)     1,319       1,424             598       1,319       2,022       3,341       (216   1997   12/28/2016   7 to 40 Years
 
1
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Sonny’s BBQ   Inverness, FL   (b)     584       503             151       584       654       1,238       (125   1998   6/9/2017   10 to 30 Years
Sonny’s BBQ   Orlando, FL   (b)     1,484       1,415                   1,484       1,415       2,899       (220   1998   12/28/2016   6 to 40 Years
Sonny’s BBQ   Gainesville, FL   (b)     1,489       1,241             104       1,489       1,345       2,834       (211   2000   12/28/2016   6 to 40 Years
Sonny’s BBQ   Orlando, FL   (b)     1,351       1,404                   1,351       1,404       2,755       (187   2002   12/28/2016   8 to 40 Years
Sonny’s BBQ   Gainesville, FL   (b)     1,534       883                   1,534       883       2,417       (177   1984   12/28/2016   6 to 30 Years
Sonny’s BBQ   Oviedo, FL   (b)     1,499       1,449             264       1,499       1,713       3,212       (244   2006   12/28/2016   7 to 40 Years
Sonny’s BBQ   Sanford, FL   (b)     1,405       1,191                   1,405       1,191       2,596       (226   1987   12/28/2016   6 to 30 Years
South Carolina Oncology Associates   Columbia, SC   (b)     3,378       35,153                   3,378       35,153       38,531       (6,488   2003   12/31/2013   15 to 40 Years
Southern Theatres   Mooresville, NC   (b)     5,087       6,800             1,250       5,087       8,050       13,137       (1,819   1999   9/25/2014   15 to 30 Years
Southern Theatres   Anderson, SC   (b)     5,248       6,437             1,250       5,248       7,687       12,935       (2,236   2000   9/25/2014   15 to 30 Years
Specialists in Urology   Bonita Springs, FL   (b)     376       940                   376       940       1,316       (285   2006   8/30/2012   15 to 50 Years
Specialists in Urology   Naples, FL   (b)     1,829       4,522                   1,829       4,522       6,351       (1,294   1978   8/30/2012   15 to 40 Years
Specialists in Urology   Bonita Springs, FL   (b)     738       4,022                   738       4,022       4,760       (1,008   2006   8/30/2012   15 to 50 Years
Specialists in Urology   Naples, FL   (b)     1,057       3,845                   1,057       3,845       4,902       (965   2012   10/31/2012   15 to 50 Years
Specialists in Urology   Fort Myers, FL   (b)     903       6,445                   903       6,445       7,348       (1,546   1989   8/30/2012   15 to 50 Years
Specialists in Urology   Naples, FL   (b)     1,351       5,368                   1,351       5,368       6,719       (1,283   2002   8/30/2012   15 to 50 Years
Specialists in Urology   Bonita Springs, FL   (b)     317       1,619                   317       1,619       1,936       (420   2003   8/30/2012   15 to 50 Years
Specialists in Urology   Cape Coral, FL   (b)     545       1,716       (231     (680     314       1,036       1,350       (92   2011   8/30/2012   14 to 90 Years
Specialists in Urology   Kennewick, WA   (b)     353       4,248                   353       4,248       4,601       (638   2011   3/31/2016   13 to 40 Years
Sportsman’s Warehouse   Thornton, CO   (b)     2,836       5,069                   2,836       5,069       7,905       (1,849   2003   10/15/2012   15 to 30 Years
Sportsman’s Warehouse   Midvale, UT   (b)     2,931       4,844                   2,931       4,844       7,775       (1,643   2002   10/15/2012   15 to 30 Years
Sportsman’s Warehouse   Mesa, AZ   (b)     2,040       5,696                   2,040       5,696       7,736       (1,879   2005   10/15/2012   15 to 30 Years
Sportsman’s Warehouse   Phoenix, AZ   (b)     2,098       5,338                   2,098       5,338       7,436       (1,795   2003   10/15/2012   15 to 30 Years
Sportsman’s Warehouse   Loveland, CO   (b)     2,329       4,750                   2,329       4,750       7,079       (1,559   2001   10/15/2012   15 to 30 Years
Sportsman’s Warehouse   Colorado Springs, CO   (b)     2,568       4,842                   2,568       4,842       7,410       (953   2005   8/31/2016   10 to 40 Years
Sportsman’s Warehouse   Williston, ND   (b)     2,190       4,132                   2,190       4,132       6,322       (668   2015   8/24/2015   15 to 50 Years
Sportsman’s Warehouse   Bend, OR   (b)     1,516       4,850                   1,516       4,850       6,366       (1,051   2000   8/15/2013   10 to 50 Years
Sportsman’s Warehouse   West Jordan, UT   (b)     3,055       7,493             7       3,055       7,500       10,555       (227   2019   12/20/2019   12 to 40 Years
Staples   Crossville, TN   (b)     668       2,705                   668       2,705       3,373       (620   2001   7/17/2013   3 to 46 Years
Staples   Peru, IL   (b)     963       2,033                   963       2,033       2,996       (632   1998   7/17/2013   1 to 35 Years
Staples   Clarksville, IN   (b)     991       3,161                   991       3,161       4,152       (648   2006   7/17/2013   3 to 48 Years
Staples   Greenville, SC   (b)     742       3,026                   742       3,026       3,768       (572   2006   7/17/2013   3 to 48 Years
Staples   Warsaw, IN   (b)     590       2,504                   590       2,504       3,094       (606   1998   7/17/2013   11 to 44 Years
Staples   Guntersville, AL   (b)     1,039       2,535             11       1,039       2,546       3,585       (576   2001   7/17/2013   2 to 46 Years
Starbucks   Kingsport, TN   (b)     307       766                   307       766       1,073       (243   2007   7/17/2013   4 to 32 Years
Starbucks   Bowling Green, KY   (b)     756       205                   756       205       961       (139   2007   7/17/2013   4 to 39 Years
Starbucks   Stillwater, OK   (b)     218       1,262                   218       1,262       1,480       (344   2007   7/17/2013   4 to 32 Years
 
16
3

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Starbucks   Powell, TN   (b)     411       353                   411       353       764       (176   2007   7/17/2013   4 to 26 Years
Stater Bros. Markets   Lancaster, CA   (b)     1,569       4,271                   1,569       4,271       5,840       (1,286   1983   12/17/2013   5 to 30 Years
Studio Movie Grill   Downey, CA   (b)     1,767       12,172             2,966       1,767       15,138       16,905       (2,514   1997   9/30/2015   15 to 30 Years
Studio Movie Grill   Monrovia, CA   (b)     2,448       17,849             2,966       2,448       20,815       23,263       (3,456   2000   9/30/2015   15 to 30 Years
Studio Movie Grill   Redlands, CA   (b)     4,442       17,859             2,966       4,442       20,825       25,267       (3,648   1997   9/30/2015   15 to 30 Years
Studio Movie Grill   Marietta, GA   (b)     2,930       7,616             67       2,930       7,683       10,613       (1,102   1987   3/15/2017   10 to 40 Years
Sunny Delight   Dayton, NJ   (b)     12,701       10,723                   12,701       10,723       23,424       (2,753   1975   10/27/2016   7 to 30 Years
SuperValu   Warwick, RI   (b)     3,331       3,500                   3,331       3,500       6,831       (214   1992   7/17/2013  
15
to
15
Years
Taco Bell   Anderson, IN   (b)     363       700                   363       700       1,063       (398   1995   7/17/2013   8 to 17 Years
Taco Bell   Brazil, IN   (b)     391       903                   391       903       1,294       (308   1996   7/17/2013   8 to 33 Years
Taco Bell   Henderson, KY   (b)     656       1,058                   656       1,058       1,714       (292   1992   7/17/2013   7 to 35 Years
Taco Bell   Martinsville, IN   (b)     940       1,128                   940       1,128       2,068       (318   1986   7/17/2013   4 to 35 Years
Taco Bell   Princeton, IN   (b)     340       906                   340       906       1,246       (563   1992   7/17/2013   7 to 15 Years
Taco Bell   Robinson, IL   (b)     250       1,021                   250       1,021       1,271       (340   1994   7/17/2013   7 to 33 Years
Taco Bell
  Washington, IN   (b)     272       949                   272       949       1,221       (328   1995   7/17/2013   8 to 33 Years
Taco Bell
  Moultrie, GA   (b)     437       563                   437       563       1,000       (217   2012   3/29/2013   15 to 30 Years
Taco Bell
  Greenville, TN   (b)     735       517                   735       517       1,252       (216   2010   3/29/2013   15 to 30 Years
Taco Bell / KFC
  Vincennes, IN   (b)     389       1,425                   389       1,425       1,814       (449   2000   7/17/2013   8 to 30 Years
Taco Bueno
  Haltom City, TX   (b)     689       804                   689       804       1,493       (188   1998   6/30/2016   5 to 30 Years
Taco Bueno
  Tulsa, OK   (b)     835       967                   835       967       1,802       (192   1978   6/30/2016   5 to 30 Years
Taco Bueno
  Abilene, TX   (b)     510       818                   510       818       1,328       (180   1977   6/30/2016   5 to 30 Years
Taco Bueno
  Denton, TX   (b)     693       884                   693       884       1,577       (200   1995   6/30/2016   5 to 30 Years
Taco Bueno
  Fort Worth, TX   (b)     681       928                   681       928       1,609       (212   1999   6/30/2016   5 to 30 Years
Taco Bueno
  Greenville, TX   (b)     429       919                   429       919       1,348       (175   1985   6/30/2016   5 to 30 Years
Taco Bueno
  Muskogee, OK   (b)     853       767                   853       767       1,620       (176   1985   6/30/2016   5 to 30 Years
Taco Bueno
  Broken Arrow, OK   (b)     849       1,020                   849       1,020       1,869       (200   1986   6/30/2016   5 to 30 Years
Taco Bueno
  Tulsa, OK   (b)           20             (20                           1982   6/30/2016   (g)
Taco Bueno
  Abilene, TX   (b)     1,132       1,292             (10     1,132       1,282       2,414       (276   1979   6/30/2016   5 to 30 Years
Taco Bueno
  Claremore, OK   (b)     903       932                   903       932       1,835       (207   1985   6/30/2016   5 to 30 Years
Taco Bueno
  Lake Worth, TX   (b)     427       872                   427       872       1,299       (168   1983   6/30/2016   5 to 30 Years
Taco Bueno
  Grapevine, TX   (b)     755       677                   755       677       1,432       (225   1999   6/30/2016   5 to 20 Years
Taco Bueno
  Bedford, TX   (b)     694       516                   694       516       1,210       (168   1977   6/30/2016   5 to 20 Years
Taco Bueno
  McKinney, TX   (b)     1,289       467                   1,289       467       1,756       (203   2000   6/30/2016   5 to 20 Years
Taco Bueno
  Sapulpa, OK   (b)     855       1,030                   855       1,030       1,885       (227   1987   6/30/2016   5 to 30 Years
Taco Bueno
  Arlington, TX   (b)     540       1,205                   540       1,205       1,745       (232   1981   6/30/2016   5 to 30 Years
Taco Bueno
  Oklahoma City, OK   (b)     474       516       (62     (128     412       388       800           1984   6/30/2016   4 to 15 Years
Taco Bueno
  Cedar Hill, TX   (b)     655       708                   655       708       1,363       (51   2005   11/25/2019   8 to 20
 
Years
 
16
4

Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Taco Bueno
  Tulsa, OK   (b)                                                   1986   6/30/2016   (g)
Ted’s Cafe Escondido
  Broken Arrow, OK   (b)     1,390       2,169                   1,390       2,169       3,559       (158   2006   11/25/2019   7 to 20 Years
Ted’s Cafe Escondido
  Tulsa, OK   (b)     1,578       2,385                   1,578       2,385       3,963       (162   2013   11/25/2019   7 to 20 Years
Terra Mulch Products
  Hickory, NC   (b)     1,356       5,406                   1,356       5,406       6,762       (1,451   2006   5/11/2015   10 to 30 Years
Tesla
  Maplewood, MN   (b)     1,893       6,154                   1,893       6,154       8,047           1980   12/22/2020   10 to 35 Years
Texas Corral
  Shelbyville, IN   (b)     549       752                   549       752       1,301       (373   2006   12/21/2007   15 to 50 Years
Texas Roadhouse
  Memphis, TN   (b)     1,214       1,412                   1,214       1,412       2,626       (74   2005   11/25/2019   5 to 33 Years
The Children’s Courtyard
  Frederick, CO   (b)     334       2,146             12       334       2,158       2,492       (285   2003   3/31/2017   15 to 30 Years
The Toledo Hospital
  Monroe, MI   (b)     728       3,440                   728       3,440       4,168       (1,088   2002   8/18/2014   9 to 30 Years
TI Group Automotive
  Lavonia, GA   (b)     3,939       7,950                   3,939       7,950       11,889       (47   2005   11/19/2020   9 to 32 Years
Tire Warehouse
  Portland, ME   (b)     695       944             12       695       956       1,651       (66   1993   11/25/2019   5 to 22 Years
TJ Maxx
(f)
  Staunton, VA   (b)     578       2,063             358       578       2,421       2,999       (1,188   1988   7/17/2013   5 to 20 Years
Topgolf
  Baton Rouge, LA   (b)     3,734       9,595       3,450       6,104       7,184       15,699       22,883       (1,148   2018   12/10/2018   11 to 45 Years
Tower Automotive
  Bellevue, OH   (b)     5,344       28,900                   5,344       28,900       34,244       (1,254   1990   1/28/2020   9 to 30 Years
Tractor Supply
  Paw Paw, MI   (b)     1,517       1,619       77             1,594       1,619       3,213       (798   2006   7/17/2013   4 to 33 Years
Tractor Supply
  Navasota, TX   (b)     1,013       1,772                   1,013       1,772       2,785       (723   2006   7/17/2013   8 to 41 Years
Tractor Supply
  Baytown, TX   (b)     1,440       1,712                   1,440       1,712       3,152       (635   2007   7/17/2013   9 to 39 Years
Tractor Supply
  Fredericksburg, TX   (b)     1,194       1,636                   1,194       1,636       2,830       (652   2007   7/17/2013   8 to 42 Years
Tractor Supply
  Ashland, WI   (b)     462       637                   462       637       1,099       (573   1975   11/13/2015   15 to 20 Years
Tractor Supply
  Liberty, KY   (b)     474       945                   474       945       1,419       (620   2000   11/13/2015   15 to 30 Years
Tractor Supply
  La Grange, KY   (a)     1,524       1,871                   1,524       1,871       3,395       (604   2008   7/17/2013   10 to 48 Years
Tractor Supply
  Baldwinsville, NY   (a)     1,105       2,008                   1,105       2,008       3,113       (884   2005   7/17/2013   11 to 37 Years
Tractor Supply
  Carroll, OH   (b)     1,144       4,557                   1,144       4,557       5,701       (1,764   1976   7/17/2013   3 to 30 Years
Tractor Supply
  Mount Sterling, KY   (b)     1,785       1,051                   1,785       1,051       2,836       (634   2011   7/17/2013   12 to 38 Years
Tractor Supply
  Ellettsville, IN   (a)     894       1,872                   894       1,872       2,766       (656   2010   7/17/2013   11 to 47 Years
Tractor Supply
  Lowville, NY   (a)     791       1,659                   791       1,659       2,450       (555   2010   7/17/2013   12 to 42 Years
Tractor Supply
  Malone, NY   (a)     793       1,677                   793       1,677       2,470       (632   2010   7/17/2013   11 to 42 Years
Tractor Supply
  Ankeny, IA   (b)     687       2,162       116             803       2,162       2,965       (626   2006   7/17/2013   4 to 43 Years
Tractor Supply
  Marinette, WI   (b)     1,236       1,611                   1,236       1,611       2,847       (666   2006   7/17/2013   8 to 38 Years
Tractor Supply
  Prior Lake, MN   (b)     1,998       2,454                   1,998       2,454       4,452       (1,083   1991   7/17/2013   7 to 26 Years
Tractor Supply
  Fairview, TN   (b)     975       2,274                   975       2,274       3,249       (690   2007   7/17/2013   8 to 47 Years
Tractor Supply
  Rockford, MN   (b)     1,298       2,652             60       1,298       2,712       4,010       (878   2007   7/17/2013   9 to 43 Years
Tractor Supply   Rome, NY   (b)     1,326       1,110                   1,326       1,110       2,436       (568   2007   7/17/2013   9 to 34 Years
Tractor Supply   Parkersburg, WV   (b)     966       1,843                   966       1,843       2,809       (691   2005   7/17/2013   7 to 37 Years
Tutor Time   Grand Rapids, MI   (b)     393       1,363                   393       1,363       1,756       (351   2001   3/20/2015   5 to 30 Years
Tutor Time   Pittsburgh, PA   (b)     457       693                   457       693       1,150       (443   1985   7/17/2013   5 to 15 Years
Twin Peaks   Little Rock, AR   (b)     1,112                         1,112             1,112           (e)   11/25/2019   (e)
 
16
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Twin Tiers Eye Care   Elmira, NY   (b)     184       3,902                   184       3,902       4,086       (784   1985   4/30/2015   15 to 30 Years
Twin Tiers Eye Care   Binghamton, NY   (b)     328       2,214                   328       2,214       2,542       (453   1985   4/30/2015   15 to 30 Years
Twin Tiers Eye Care   Bath, NY   (b)     72       707                   72       707       779       (153   1970   4/30/2015   15 to 30 Years
Twin Tiers Eye Care   Corning, NY   (b)     123       1,261                   123       1,261       1,384       (265   1999   4/30/2015  
15
to 30 Years
Twin Tiers Eye Care   Endicott, NY   (b)     92       348                   92       348       440       (93   2001   4/30/2015   15 to 30 Years
Twin Tiers Eye Care   Watkins Glen, NY   (b)     113       318                   113       318       431       (91   2002   4/30/2015   15 to 30 Years
United Ag & Turf   Rhome, TX   (b)     782       1,543                   782       1,543       2,325       (48   2006   1/28/2020   8 to 40 Years
United Ag & Turf   Mineola, TX   (b)     251       731                   251       731       982       (57   1981   1/28/2020   6 to 15 Years
United Ag & Turf   Sulphur Springs, TX   (b)     621       2,722                   621       2,722       3,343       (113   2003   1/28/2020   7 to 38 Years
United Ag & Turf   Terrel, TX   (b)     219       1,800                   219       1,800       2,019       (124   1981   1/28/2020   7 to 15 Years
United Ag & Turf   Mount Pleasant, TX   (b)     168       2,159                   168       2,159       2,327       (76   1993   1/28/2020   8 to 30 Years
United Supermarkets   Childress, TX   (b)     747       934                   747       934       1,681       (374   1997   5/23/2005   7 to 40 Years
United Supermarkets   Levelland, TX   (b)     1,651       2,158                   1,651       2,158       3,809       (825   1997   5/23/2005   11 to 40 Years
United Supermarkets   Amarillo, TX   (b)     1,828       1,292                   1,828       1,292       3,120       (640   1988   5/23/2005   9 to 30 Years
United Supermarkets   Snyder, TX   (b)     2,062       2,963                   2,062       2,963       5,025       (1,131   1999   5/23/2005   14 to 40 Years
United Supermarkets   Amarillo, TX   (b)     1,573       1,586                   1,573       1,586       3,159       (783   1989   5/23/2005   9 to 30 Years
United Supermarkets   Muleshoe, TX   (a)     471       1,770                   471       1,770       2,241       (574   1999   8/29/2011   15 to 40 Years
United Technologies Corporation   Winston-Salem, NC    (a)     927       3,455                   927       3,455       4,382       (1,202   1987   7/17/2013   5 to 40 Years
Universal Tax Systems
(f)
  Kennesaw, GA   (b)     3,560       23,583             33       3,560       23,616       27,176       (4,966   1996   7/17/2013   8 to 45 Years
Vacant   St. Peters, MO   (b)     1,814       5,810       (1,166     (3,568     648       2,242       2,890           2007   7/17/2013   1 to 26 Years
Vacant   Peoria, IL   (b)     2,407       5,452       (1,629     (3,735     778       1,717       2,495       (54   2006   7/17/2013   3 to 33 Years
Vacant   Conroe, TX   (b)     942       3,274       (575     (2,006     367       1,268       1,635       (225   1993   7/17/2013   11 to 32 Years
Vacant   Princeton, WV   (b)     948       2,212       (807     (1,902     141       310       451       (18   2001   7/17/2013   4 to 18 Years
Valley Surgical Center   Steubenville, OH   (b)     363       3,726                   363       3,726       4,089       (713   2009   8/18/2014   14 to 40 Years
VASA Fitness   Westminster, CO   (b)     3,264       5,593             42       3,264       5,635       8,899       (637   2000   11/15/2018   8 to 30 Years
VASA Fitness   Taylorsville, UT   (b)     1,496       3,593                   1,496       3,593       5,089       (1,057   1988   11/20/2015   12 to 20 Years
VASA Fitness   Oklahoma City, OK   (b)     1,289       6,616                   1,289       6,616       7,905           1988   12/30/2020   13 to 39 Years
Verizon   Covington, TN   (b)     343       152                   343       152       495       (146   2007   7/17/2013   3 to 24 Years
Walgreens   Albany, GA   (b)     961       3,314                   961       3,314       4,275       (743   2008   7/17/2013   12 to 43 Years
Walgreens   Columbus, MS   (b)     769       3,475                   769       3,475       4,244       (745   2004   7/17/2013   11 to 41 Years
Walgreens   Seattle, WA   (b)     2,589       4,245                   2,589       4,245       6,834       (938   2002   7/17/2013   9 to 43 Years
Walgreens   Crossville, TN   (b)     1,890       3,680                   1,890       3,680       5,570       (837   2001   7/17/2013   7 to 41 Years
Walgreens   Jacksonville, FL   (b)     521       4,365                   521       4,365       4,886       (941   2000   7/17/2013   7 to 40 Years
Walgreens   LaMarque, TX   (a)     464       3,139                   464       3,139       3,603       (783   2000   7/17/2013   7 to 40 Years
Walgreens   Tulsa, OK   (b)     741       3,179                   741       3,179       3,920       (734   1994   7/17/2013   1 to 35 Years
Walgreens   Newton, IA   (a)     365       4,475                   365       4,475       4,840       (929   2001   7/17/2013   7 to 44 Years
Walgreens   Evansville, IN   (a)     1,249       3,924                   1,249       3,924       5,173       (887   2007   7/17/2013   12 to 44 Years
 
16
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Walgreens   San Antonio, TX   (b)     841       3,909                   841       3,909       4,750       (830   2004   7/17/2013   14 to 40 Years
Walgreens   Canton, IL   (b)     703       4,098                   703       4,098       4,801       (898   2006   7/17/2013   12 to 43 Years
Walgreens   Memphis, TN   (b)     961       5,389                   961       5,389       6,350       (1,107   2002   7/17/2013   12 to 43 Years
Walgreens   Parkville, MO   (b)     1,854       2,568                   1,854       2,568       4,422       (740   2006   7/17/2013   11 to 38 Years
Walgreens   DeSoto, TX   (a)     1,007       2,313                   1,007       2,313       3,320       (604   1997   7/17/2013   5 to 40 Years
Walgreens   Batesville, MS   (a)     421       3,932                   421       3,932       4,353       (806   2007   7/17/2013   10 to 42 Years
Walgreens   Cincinnati, OH   (a)     1,527       4,307                   1,527       4,307       5,834       (959   2000   7/17/2013   7 to 42 Years
Walgreens   Gainesville, FL   (b)     922       2,705                   922       2,705       3,627       (636   1998   7/17/2013   4 to 40 Years
Walgreens   Madeira, OH   (b)     951       3,978             67       951       4,045       4,996       (848   1998   7/17/2013   5 to 44 Years
Walgreens   Houston, TX   (b)     1,079       3,582       (480     (1,781     599       1,801       2,400       (37   2001   7/17/2013   4 to 33 Years
Walgreens   Dallas, TX   (b)     735       3,328                   735       3,328       4,063       (735   1996   7/17/2013   3 to 40 Years
Walgreens   Hixson, TN   (b)     450       2,025                   450       2,025       2,475       (173   1997   7/17/2013   40 to 40 Years
Walgreens   Kansas City, MO   (b)     634       4,341                   634       4,341       4,975       (952   1997   7/17/2013   4 to 43 Years
Walgreens   Kansas City, MO   (b)     532       3,549                   532       3,549       4,081       (859   1998   7/17/2013   4 to 39 Years
Walgreens   Kansas City, MO   (b)     862       4,367                   862       4,367       5,229       (957   2000   7/17/2013   6 to 42 Years
Walgreens   Kansas City, MO   (b)     518       4,234                   518       4,234       4,752       (929   1999   7/17/2013   6 to 43 Years
Walgreens   Knoxville, TN   (b)     2,107       3,334                   2,107       3,334       5,441       (845   2000   7/17/2013   6 to 40 Years
Walgreens   Picayune, MS   (b)     954       3,132                   954       3,132       4,086       (682   2006   7/17/2013   10 to 42 Years
Walgreens   Olivette, MO   (b)     1,816       5,917                   1,816       5,917       7,733       (1,357   2001   7/17/2013   11 to 42 Years
Walgreens   Columbia, MO   (b)     1,047       5,242                   1,047       5,242       6,289       (1,012   2002   7/17/2013   9 to 44 Years
Walgreens   Enterprise, AL   (b)     1,163       1,612                   1,163       1,612       2,775       (517   2006   7/17/2013   11 to 37 Years
Walgreens   Rome, NY   (b)     1,135       3,104                   1,135       3,104       4,239       (697   2007   7/17/2013   13 to 43 Years
Walgreens   Elmira, NY   (b)     1,066       4,230                   1,066       4,230       5,296       (945   2007   7/17/2013   12 to 43 Years
Walgreens   Shreveport, LA   (b)     1,461       3,605                   1,461       3,605       5,066       (865   1999   7/17/2013   6 to 40 Years
Walgreens
(f)
  Collierville, TN   (b)     2,217       14,205             (295     2,217       13,910       16,127       (3,136   2002   7/17/2013   3 to 45 Years
Walmart   Spencer, IN   (b)     971       2,483                   971       2,483       3,454       (1,238   1987   7/17/2013   4 to 22 Years
Walmart   New London, WI   (b)     1,008       2,094                   1,008       2,094       3,102       (1,515   1991   7/17/2013   3 to 18 Years
Walmart   Sidney, OH   (b)     1,961       69                   1,961       69       2,030       (16   2001   1/8/2019   7 to 7 Years
Wawa   Narberth, PA   (b)     1,812       3,163                   1,812       3,163       4,975       (677   2006   7/17/2013   8 to 46 Years
Wawa   Manahawkin, NJ   (b)     3,258       1,954                   3,258       1,954       5,212       (1,273   2001   7/17/2013   8 to 46 Years
Wawa   Hockessin, DE   (b)     1,921       2,477                   1,921       2,477       4,398       (752   2001   7/17/2013   8 to 46 Years
Wendy’s   Greenville, TX   (b)     336       773                   336       773       1,109       (49   1985   11/25/2019   9 to 21 Years
Whirlpool   Bridgeton, MO   (b)     10,183       23,664                   10,183       23,664       33,847       (188   2020   11/10/2020   5 to 31 Years
Winco Foods   Eureka, CA   (b)     3,108       12,817                   3,108       12,817       15,925       (2,976   1960   7/17/2013   3 to 40 Years
Winsteads   Overland Park, KS   (b)     607       123                   607       123       730       (23   2009   11/25/2019   7 to 21 Years
Yard House   Cincinnati, OH   (b)     1,370       8,260       (29     21       1,341       8,281       9,622       (285   2013   11/25/2019   3 to 35 Years
Zaxby’s   Jonesboro, GA   (b)     679       1,736       (69           610       1,736       2,346       (368   2006   7/1/2015   15 to 30 Years
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
           
Initial Cost to Company
   
Cost Capitalized Subsequent to
Acquisition including
impairment
   
Gross Amount at
December 31, 2020
(d)
                   
Concept
 
City, State
 
Encumbrances
(c)
 
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Land and
Improvements
   
Buildings and
Improvements
   
Total
   
Final  
Accumulated  
Depreciation  
   
Date of
Construction
 
Date
Acquired
 
Life in which
depreciation in
latest
Statement of
Operations is
computed
Zaxby’s   College Park, GA   (b)     839       1,439                   839       1,439       2,278       (333   2007   7/1/2015   15 to 30 Years
Zaxby’s   Riverdale, GA   (b)     741       1,789                   741       1,789       2,530       (382   2010   9/17/2015   15 to 30 Years
Zips Car Wash   Springdale, AR   (b)     520       2,032                   520       2,032       2,552       (421   2005   9/30/2015   15 to 30 Years
Zips Car Wash   San Antonio, TX   (b)     1,422       1,108             110       1,422       1,218       2,640       (255   2010   3/29/2017   10 to 30 Years
Zips Car Wash   Edmond, OK   (b)     644       1,896                   644       1,896       2,540       (393   2005   9/30/2015   15 to 30 Years
Zips Car Wash   Sherwood, AR   (b)     1,128       1,388                   1,128       1,388       2,516       (382   2010   9/30/2015   15 to 30 Years
Zips Car Wash   Siloam Springs, AR   (b)     991       1,884                   991       1,884       2,875       (425   2005   9/30/2015   15 to 30 Years
Zips Car Wash   New Braunfels, TX   (b)     1,261       1,571             110       1,261       1,681       2,942       (287   2010   3/29/2017   10 to 30 Years
Zips Car Wash   Oklahoma City, OK   (b)     1,004       1,933                   1,004       1,933       2,937       (447   2005   9/30/2015   15 to 30 Years
Zips Car Wash   Arlington, TN   (b)     867       1,487                   867       1,487       2,354       (347   2010   9/30/2015   15 to 30 Years
Zips Car Wash   Oklahoma City, OK   (b)     545       1,995                   545       1,995       2,540       (406   2005   9/30/2015   15 to 30 Years
Zips Car Wash   Texarkana, TX   (b)     483       1,400                   483       1,400       1,883       (293   2010   9/30/2015   15 to 30 Years
Zips Car Wash   Universal City, TX   (b)     1,167       1,440             123       1,167       1,563       2,730       (286   2011   6/30/2017   15 to 30 Years
Zips Car Wash   Converse, TX   (b)     1,253       1,493             199       1,253       1,692       2,945       (381   2011   3/29/2017   10 to 30 Years
Zips Car Wash   Seguin, TX   (b)     621       1,264             110       621       1,374       1,995       (283   2010   3/29/2017   10 to 30 Years
Vacant   Grove City, OH   (a)     2,050       3,288       (1,202     (1,981     848       1,307       2,155       (208   2008   7/17/2013   6 to 34 Years
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
             
              2,109,580       4,225,347       (18,988     76,657       2,090,592       4,302,004       6,392,596       (850,320            
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
             
(a)
 
Represents properties collateralized with fixed CMBS debt. See Note 4 for further details.
(b)
 
Represents unencumbered properties.
(c)
 
The aggregate cost of properties for federal income tax purposes is approximately $5.9 billion at December 31, 2020.
(d)
 
As of December 31, 2020, the Company held certain direct finance lease and held for sale properties, which are not included in the table above.
(e)
 
Represents land only properties with no depreciation and therefore date of construction and estimated life for depreciation not applicable.
(f)
 
Represents the anchor tenant by rent in a multi-tenant property.
(g)
 
Represents properties that have been fully written down and therefore estimated life for depreciation not applicable.
(h)
 
Represents one property that is under construction and therefore date of construction and estimated life for depreciation not applicable.
 
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule III Real Estate and
Accumulated Depreciation
(Amounts in thousands)
 
    
2020
    
2019
    
2018
 
Land, buildings, and improvements
                          
Balance at the beginning of the year
   $ 5,750,507         $ 4,757,717         $ 7,281,307     
Additions:
                          
Acquisitions, capital expenditures, and reclassifications from held for sale and deferred financing leases
     842,891           1,238,020           315,324     
Deductions:
                          
Dispositions of land, buildings, and improvements
     (50,853)          (98,445)          (112,430)    
Reclassifications to held for sale
     (69,573)          (119,449)          (11,670)    
Impairments, basis reset due to impairment and other adjustments
     (80,376)          (27,336)          (26,263)    
SMTA Spin-off
     —           —           (2,688,551)    
    
 
 
    
 
 
    
 
 
 
Gross Real Estate Balance at close of the year
   $ 6,392,596         $           5,750,507         $           4,757,717     
    
 
 
    
 
 
    
 
 
 
                            
Accumulated depreciation and amortization
                          
Balance at the beginning of the year
   $ (717,097)        $ (621,456)        $ (1,075,643)    
Additions:
                          
Depreciation expense and reclassifications from held for sale
     (177,268)          (145,104)          (165,898)    
Deductions:
                          
Dispositions of land, buildings, and improvements and other adjustments
     38,723           32,678           30,381     
Reclassifications to held for sale
     5,322           16,785           2,372     
SMTA Spin-off
     —           —           587,332     
    
 
 
    
 
 
    
 
 
 
Balance at close of the year
   $ (850,320)        $ (717,097)        $ (621,456)    
    
 
 
    
 
 
    
 
 
 
                            
Net Real Estate Investment
   $         5,542,276         $ 5,033,410         $ 4,136,261     
    
 
 
    
 
 
    
 
 
 
 
16
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Table of Contents
SPIRIT REALTY CAPITAL, INC.
Schedule IV
Mortgage Loans on Real Estate
As of December 31, 2020
(In thousands)
 
    
2020
    
2019
    
2018
 
Reconciliation of Mortgage Loans on Real Estate
                          
Balance January 1,
   $             32,654         $ 45,187         $ 74,612     
Additions during period
                          
New mortgage loans
     —           —           2,888     
Deductions during period
                          
Collections of principal
     (31,733)          (10,927)          (26,978)    
Spin-Off to SMTA
     —           —           (2,888)    
Amortization of premium
     (921)          (1,606)          (2,510)    
    
 
 
    
 
 
    
 
 
 
Mortgage loans receivable December 31,
     —           32,654           45,124     
    
 
 
    
 
 
    
 
 
 
Mortgage loan loss provisions
     —           —           63     
    
 
 
    
 
 
    
 
 
 
       —           32,654           45,187     
Equipment and other loans receivable
     —           1,811           1,857     
Total loans receivable
  
$
            —   
 
  
$
            34,465   
 
  
$
            47,044   
 
    
 
 
    
 
 
    
 
 
 
 
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Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
SPIRIT REALTY CAPITAL, INC.
(Registrant)
By:   /s/ Prakash J. Parag
Name:     Prakash J. Parag
Title:  
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Date: February 19, 2021
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below does hereby constitute and appoint Jackson Hsieh, Michael Hughes, Prakash J. Parag and Jay Young, and each of them singly, our true and lawful attorneys with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Form
10-K
filed herewith and any and all amendments to said Form
10-K,
and generally to do all such things in our names and in our capacities as officers and directors to enable Spirit Realty Capital, Inc. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission in connection therewith, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Form
10-K
and any and all amendments thereto.
Pursuant to the requirements of the Securities and Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
Name
 
Title
     
Date
/s/ Jackson Hsieh
 
President, Chief Executive Officer and Director
(Principal Executive Officer)
      
February 19, 2021
/s/ Michael Hughes
 
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
   
February 19, 2021
/s/ Prakash J. Parag
 
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
   
February 19, 2021
/s/ Kevin M. Charlton
 
Director
   
February 19, 2021
/s/ Todd A. Dunn
 
Director
   
February 19, 2021
/s/ Richard I. Gilchrist
 
Director
   
February 19, 2021
/s/ Elizabeth Frank
 
Director
   
February 19, 2021
/s/ Diana Laing
 
Director
   
February 19, 2021
/s/ Sheli Z. Rosenberg
 
Director
   
February 19, 2021
/s/ Thomas D. Senkbeil
 
Director
   
February 19, 2021
/s/ Nicholas P. Shepherd
 
Director
   
February 19, 2021
 
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Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
SPIRIT REALTY, L.P.
(Registrant)
By:
 
Spirit Realty Capital, Inc., in its capacity as sole member of Spirit General Holdings, LLC, as sole general partner and on behalf of Spirit Realty, L.P.
By:   /s/ Prakash J. Parag
Name:     Prakash J. Parag
Title:  
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Date: February 19, 2021
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below does hereby constitute and appoint Jackson Hsieh, Michael Hughes, Prakash J. Parag and Jay Young, and each of them singly, our true and lawful attorneys with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Form
10-K
filed herewith and any and all amendments to said Form
10-K,
and generally to do all such things in our names and in our capacities as officers and directors to enable Spirit Realty Capital, Inc., in its capacity as sole member of Spirit General Holdings, LLC, as sole general partner and on behalf of Spirit Realty, L.P., to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission in connection therewith, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Form
10-K
and any and all amendments thereto.
Pursuant to the requirements of the Securities and Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
Name
 
Title
     
Date
/s/ Jackson Hsieh
 
President, Chief Executive Officer and Director
(Principal Executive Officer)
      
February 19, 2021
/s/ Michael Hughes
 
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
   
February 19, 2021
/s/ Prakash J. Parag
 
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
   
February 19, 2021
/s/ Kevin M. Charlton
 
Director
   
February 19, 2021
/s/ Todd A. Dunn
 
Director
   
February 19, 2021
/s/ Richard I. Gilchrist
 
Director
   
February 19, 2021
/s/ Elizabeth Frank
 
Director
   
February 19, 2021
/s/ Diana Laing
 
Director
   
February 19, 2021
 
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Table of Contents
Name
 
Title
     
Date
/s/ Sheli Z. Rosenberg
 
Director
   
February 19, 2021
/s/ Thomas D. Senkbeil
 
Director
   
February 19, 2021
/s/ Nicholas P. Shepherd
 
Director
   
February 19, 2021
 
173