Skip to content

AR Capital’s American Finance Trust Suspends DRIP

American Finance Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Trust V, has suspended its distribution reinvestment plan, effective immediately. According to a letter sent to DRIP participants, the next distribution payable on September 5th will be paid in cash with no DRIP shares issued.

The board of directors determined to suspend the company’s DRIP campaign in consideration of the recently announced strategic review process. The company said that although the strategic review process has progressed, no decisions have been made at this time and it is unlikely that it will provide further updates until it determines that additional disclosure is appropriate or required.

This is not the first DRIP plan suspension for the company. The REIT previously suspended its distribution reinvestment plan in July 2015, which was again reinstated in April 2016.

American Finance Trust was named as part of an undisclosed merger between a number of AR Global-sponsored REITs. It was reported that American Finance Trust would buy Healthcare Trust, Realty Finance Trust, American Realty Capital – Retail Centers of America, and American Realty Capital Healthcare Trust III.

American Finance Trust’s portfolio consists of 459 office, retail, and distribution properties totaling 13.1 million square feet with a total purchase price of $2.2 billion. The portfolio is 100 percent leased with a weighted-average remaining lease term of 9.6 years. The company commenced its initial public offering in April 2013, which closed six months later after raising $1.6 billion.

Click here to visit The DI Wire directory page.