As filed with the Securities and Exchange Commission on March 11, 2011

Registration No. 333-145949

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



 

PRE-EFFECTIVE AMENDMENT NO. 1 TO
POST-EFFECTIVE AMENDMENT NO. 11 TO
FORM S-11
FOR REGISTRATION
UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF CERTAIN REAL ESTATE COMPANIES



 

AMERICAN REALTY CAPITAL TRUST, INC.

(Exact Name of Registrant as Specified in Its Governing Instruments)

106 York Road
Jenkintown, Pennsylvania 19046
(215) 887-2189

(Address, Including Zip Code and Telephone Number,
Including Area Code, of Registrant’s Principal Executive Offices)



 

Nicholas S. Schorsch
AMERICAN REALTY CAPITAL TRUST, INC.
106 York Road
Jenkintown, Pennsylvania 19046
(215) 887-2189

(Name and Address, Including Zip Code and Telephone Number,
Including Area Code, of Agent for Service)



 

With a Copy to:

Peter M. Fass, Esq.
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
(212) 969-3000



 

Approximate Date of Commencement of Proposed Sale to Public: As soon as practicable after the registration statement becomes effective.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box: x

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

If delivery of the prospectus is expected to be made pursuant to Rule 434, check, the following box: o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

 
Large accelerated filer o   Accelerated filer o
Non-accelerated filer x (Do not check if a smaller reporting company)   Smaller reporting company o

This Post-Effective Amendment No. 11 consists of the following:

• Supplement No. 3, dated March 11, 2011.
• Registrant’s final form of Prospectus dated December 13, 2010.
• Part II, included herewith.
• Signatures, included herewith.
 

 

 
 

TABLE OF CONTENTS

AMERICAN REALTY CAPITAL TRUST, INC.
  
SUPPLEMENT NO. 3 DATED March 11, 2011
TO THE PROSPECTUS DATED December 13, 2010

This prospectus supplement (this “Supplement No. 3”) is part of the prospectus of American Realty Capital Trust, Inc. (“we,” “us,” “our,” the “REIT” or the “Company”), dated December 13, 2010 (the “Prospectus”), and should be read in conjunction with the Prospectus. This Supplement No. 3 supplements, modifies or supersedes certain information contained in our Prospectus. This Supplement No. 3 consolidates, supersedes and replaces all prior Supplements and must be read in conjunction with our Prospectus. Unless otherwise indicated, the information contained herein is current as of the filing date of the prospectus supplement in which the Company initially disclosed such information. This Supplement No. 3 will be delivered with the Prospectus.

The purpose of this supplement is to disclose, among other things, the following:

• operating information, including the status of the offering, shares currently available for sale, portfolio data including recent real estate investments and potential property investments, selected financial data, status of distributions, share repurchase program information and status of fees paid and deferred to our advisor, dealer manager and their affiliates;
• updates to our criteria for investor suitability;
• information regarding management and management compensation;
• our investment in a joint venture with one of our affiliates;
• recently completed acquisitions of real estate investments; and
• updates regarding our Section 1031 Exchange Program.

S-1

 
 

TABLE OF CONTENTS

TABLE OF CONTENTS

   
  Supplement No. 3
Page No.		   Prospectus
Page No.
OPERATING INFORMATION
                  
Status of the Offering     S-3       N/A  
Shares Currently Available for Sale     S-3       N/A  
Real Estate Investment Summary     S-3       N/A  
Real Estate Portfolio     S-3       110  
Yield on Real Estate Investments     S-6       110  
Significant Tenants and Lease Expirations     S-9       112  
Selected Financial Data     S-10       N/A  
Status of Distributions     S-10       11/176  
Share Repurchase Program     S-13       14/183  
Status of Fees Paid and Deferred     S-13       11  
PROSPECTUS UPDATES
                  
Suitability Standards     S-14       i  
Questions and Answers about this Offering     S-15       viii  
Prospectus Summary     S-20       8  
Risk Factors     S-25       20  
Management     S-26       49  
Management Compensation     S-34       69  
Conflicts of Interest     S-44       79  
Investment Objectives and Policies     S-47       85  
Prior Performance Summary     S-67       142  
Plan of Distribution     S-77       193  
Incorporation of Certain Information by Reference     S-78       200  
APPENDIX A-1: SUBSCRIPTION AGREEMENT     S-79       A-1  
APPENDIX A-2: MULTI OFFERING SUBSCRIPTION AGREEMENT     S-84       A-2-1  

S-2

 
 

TABLE OF CONTENTS

OPERATING INFORMATION

Status of Offering

We commenced our initial public offering of 150,000,000 shares of common stock on January 25, 2008. As of February 28, 2011, we had issued 76.3 million shares of common stock. Total gross proceeds from these issuances were $746.4 million. As of February 28, 2011, the aggregate value of all share issuances and subscriptions outstanding was $755.4 million based on a per share value of $10.00 (or $9.50 per share for shares issued under the DRIP).

On August 5, 2010, we filed a registration statement on Form S-11 with the U.S. Securities Exchange Commission, or the SEC, to register $325,000,000 of common stock for the follow on offering to our primary offering. Our primary offering was originally set to expire on January 25, 2011. However, as permitted by Rule 415 of the Securities Act of 1933, as amended, or the Securities Act, we will now continue our primary public offering until the earlier of July 25, 2011, or the date that the SEC declares the registration statement for the follow on offering effective.

Shares Currently Available for Sale

As of February 28, 2011, there were 74.4 million shares of our common stock available for sale, excluding shares available under the DRIP.

Real Property Investments

Real Estate Portfolio

As of February 28, 2011, we owned interests in 281 real estate properties acquired from third parties unaffiliated with us or our advisor. All properties are net leased commercial properties that are 100% leased to investment grade or other credit worthy tenants. The following is a summary of our real estate properties as of February 28, 2011 (dollars in thousands):

               
               
Property   Acquisition
Date		   No. of
Buildings		   Square
Feet		   Ownership
Percentage		   Remaining
Lease
Term (1)		   Base
Purchase
Price (2)		   Capitalization
Rate (3)		   Net
Operating
Income (4)
FedEx     Mar. 2008       1       55,440       51 %      7.8     $ 9,694       7.53 %    $ 730  
First Niagara     Mar. 2008       15       177,774       100 %      11.9       40,976       7.48 %      3,064  
Rockland Trust     May 2008       18       121,057       100 %      10.4       32,188       7.86 %      2,530  
PNC Bank (5)     Sep. &
Oct. 2008		       2       8,403       59 %      18.0       6,664       8.21 %      547  
Rite Aid     Sep. 2008       6       74,919       100 %      12.4       18,576       7.79 %      1,447  
PNC     Nov. 2008       48       264,196       100 %      7.8       40,925       7.36 %      3,013  
FedEx II     Jul. 2009       1       152,640       100 %      12.6       31,692       8.84 %      2,803  
Walgreens     Jul. 2009       1       14,820       56 %      21.4       3,818       8.12 %      310  
CVS (6)(7)     Sep. 2009
Sep. 2010		       10       131,105       86 %      23.0       44,371       8.37 %      3,713  
CVS II     Nov. 2009       15       198,729       100 %      23.4       59,788       8.48 %      5,071  
Home Depot     Dec. 2009       1       465,600       100 %      18.9       23,532       9.31 %      2,192  
BSFS     Dec. 2009 &
Jan. 2010		       6       57,336       100 %      13.2       15,041       9.24 %      1,390  
Advance Auto     Dec. 2009       1       7,000       100 %      10.8       1,730       9.25 %      160  
Fresenius     Jan. 2010       2       140,000       100 %      11.4       12,462       9.30 %      1,159  
Reckitt Benckiser     Feb. 2010       1       574,106       85 %      10.9       31,735       8.41 %      2,668  
Jack in the Box     Feb. 2010 &
Apr. 2010		       5       12,253       100 %      19.0       10,010       7.80 %      781  

S-3

 
 

TABLE OF CONTENTS

               
               
Property   Acquisition
Date		   No. of
Buildings		   Square
Feet		   Ownership
Percentage		   Remaining
Lease
Term (1)		   Base
Purchase
Price (2)		   Capitalization
Rate (3)		   Net
Operating
Income (4)
BSFS II (8)     Feb. &
Mar. 2010		       12       93,599       74 %      12.9       26,414       8.70 %      2,299  
FedEx III     Apr. 2010       1       118,796       85 %      10.3       34,171       9.03 %      3,087  
Jared Jewelry     May 2010       3       19,534       90 %      17.9       5,457       12.44 %      679  
Walgreens II     May 2010       1       14,820       100 %      22.1       5,684       7.97 %      453  
IHOP     May 2010       1       5,172       100 %      15.1       2,445       8.22 %      201  
Advance Auto II     Jun. 2010       3       19,253       100 %      12.4       3,674       8.38 %      308  
Super Stop & Shop     Jun. 2010       1       59,032       100 %      12.0       23,795       8.18 %      1,946  
IHOP II     Jun. 2010       1       4,139       100 %      11.1       2,300       8.87 %      204  
IHOP III     Jun. 2010       1       5,111       100 %      20.4       3,319       9.13 %      303  
Jared Jewelry II     Jun. 2010       1       6,157       100 %      15.9       1,635       12.78 %      209  
Jack in the Box II     Jun. 2010       6       14,975       100 %      19.4       11,396       7.83 %      892  
Walgreens III     Jun. 2010       1       13,386       100 %      23.2       5,062       7.61 %      385  
Dollar General     Jul. 2010       1       8,988       100 %      13.8       1,228       9.61 %      118  
Tractor Supply     Jul. &
Aug. 2010		       4       76,038       100 %      14.3       10,892       8.98 %      978  
Advance Auto III     Jul. 2010       3       19,752       100 %      12.5       4,287       8.35 %      358  
CSAA/CVS     Aug. 2010       1       15,214       100 %      21.9       4,859       7.24 %      352  
CSAA/First Fifth Bank (9)     Aug. 2010       2       8,252       100 %      17.0       6,199       8.39 %      520  
CSAA/Walgreens     Aug. 2010       5       84,263       100 %      21.9       26,864       7.30 %      1,961  
CSAA/Chase Bank (9)     Aug. 2010       2       8,030       100 %      26.1       6,496       9.30 %      604  
CSAA/Home Depot (9)     Sep. 2010       1       107,965       100 %      16.9       8,720       7.12 %      621  
IHOP IV     Sep. 2010       19       87,009       100 %      13.7       30,000       9.44 %      2,833  
O’Reilly Auto     Sep. 2010       1       9,500       100 %      9.0       2,450       8.73 %      214  
Walgreens IV     Sep. 2010       1       14,477       100 %      24.1       6,439       7.75 %      499  
Walgreens V     Sep. 2010       1       13,580       100 %      23.3       4,767       7.95 %      379  
Kum & Go     Sep. 2010       14       67,310       100 %      14.1       22,515       9.21 %      2,074  
FedEx IV     Sep. 2010       1       43,762       100 %      9.4       3,576       8.28 %      296  
AutoZone     Sep. 2010       4       28,880       100 %      15.4       10,228       8.40 %      859  
Brownshoe Payless     Oct. 2010       2       1,153,374       91 %      15.0       68,773       9.55 %      6,570  
Saint Joseph’s Mercy Medical     Oct. 2010       3       46,706       100 %      13.0       9,838       7.79 %      766  
Advance Auto IV     Nov. 2010       1       6,124       100 %      14.6       1,270       8.35 %      106  
Kum and Go II     Nov. 2010       2       8,008       100 %      19.8       2,895       9.50 %      275  
Tractor Supply II     Nov. 2010       1       19,174       100 %      14.7       2,388       9.09 %      217  
FedEx V     Nov. 2010       1       29,410       100 %      9.5       2,800       8.29 %      232  
Walgreens VI     Dec. 2010       7       102,930       100 %      23.3       40,071       7.00 %      2,805  
FedEx VI     Dec. 2010       1       142,160       100 %      12.8       28,600       7.92 %      2,264  
Dollar General II     Dec. 2010       1       9,100       100 %      14.4       1,281       8.98 %      115  

S-4

 
 

TABLE OF CONTENTS

               
               
Property   Acquisition
Date		   No. of
Buildings		   Square
Feet		   Ownership
Percentage		   Remaining
Lease
Term (1)		   Base
Purchase
Price (2)		   Capitalization
Rate (3)		   Net
Operating
Income (4)
FedEx VII     Dec. 2010       1       101,350       100 %      13.4       18,800       7.41 %      1,393  
FedEx VIII     Dec. 2010       4       116,689       100 %      7.5       10,891       8.20 %      893  
BB&T     Dec. 2010       1       3,635       100 %      8.8       3,781       7.88 %      298  
Walgreens VII     Dec. 2010       1       14,490       100 %      17.2       2,950       8.85 %      261  
FedEx IX     Dec. 2010       1       64,556       100 %      9.3       6,012       8.28 %      498  
Dollar General III     Dec. 2010       3       27,128       100 %      14.7       2,867       8.72 %      250  
Tractor Supply III     Dec. 2010       1       18,860       100 %      14.1       4,825       8.87 %      428  
DaVita Dialysis     Dec. 2010       1       12,990       100 %      8.4       2,848       8.15 %      232  
Dollar General IV     Dec. 2010       1       9,167       100 %      14.4       1,236       8.98 %      111  
Lowe's     Jan. 2011       1       141,393       100 %      15.4       10,018       6.74 %      675  
Citizens     Jan. 2011       2       14,307       100 %      7.9       3,811       9.11 %      347  
QuickTrip     Jan. 2011       1       4,555       100 %      13.0       3,330       8.74 %      291  
Dillons     Jan. 2011       1       56,451       100 %      8.7       5,075       7.80 %      396  
Wawa     Jan. 2011       2       12,433       100 %      16.2       17,209       7.00 %      1,205  
Walgreen's / Tim Hortons     Jan. 2011       9       122,963       100 %      23.9       54,569       6.90 %      3,742  
DaVita Dialysis II     Feb. 2011       3       16,354       100 %      10.9       5,512       8.91 %      491  
CVS III     Feb. 2011       1       13,338       100 %      25.9       5,199       7.25 %      377  
Automated Trading Desk     Feb. 2011       1       64,036       100 %      14.6       27,275       7.00 %      1,910  
Coats & Clark     Feb. 2011       1       401,512       100 %      9.9       9,523       9.84 %      937  
Walgreens VIII     Feb. 2011       1       13,650       100 %      22.7       5,460       7.34 %      401  
Sub-total              281       6,169,215                15.4       1,017,181       8.23 %      83,719  
Investment in joint venture     Dec. 2010       —       —       7 %      —       12,000       —       —  
             281       6,169,215             15.4     $ 1,029,181       8.23 %    $ 83,696  

(1) Remaining lease term as of December 31, 2010, in years. If the portfolio has multiple locations with varying lease expirations, remaining lease term is calculated on a weighted-average basis.
(2) Contract purchase price excluding acquisition related costs.
(3) Net operating income divided by base purchase price.
(4) Net operating income is annualized rental income for the property portfolio on a straight-line basis less annualized operating expenses and excludes any operating expenses that are not specific to an individual property or property portfolio.
(5) Ownership percentage is 51% of one property and 65% of one property.
(6) Ownership percentage of three properties is 51% and 100% of the remaining seven properties.
(7) Ownership percentage of six properties is 51% and 100% of the remaining six properties.
(8) Includes the September 2010 purchase of a parcel of land with a ground lease which contains a previously purchased CVS pharmacy.
(9) Property is a parcel of land with a ground lease which contains a building that will be conveyed to the Company at the end of the ground lease. Square footage and number of buildings refers to the building that is constructed on the parcel of land owned by the Company.

We believe that our real estate properties are suitable for their intended purpose and adequately covered by insurance. We do not intend to make significant renovations or improvements to our properties.

S-5

 
 

TABLE OF CONTENTS

Yield On Real Estate Investments

In the following table, the amount of the Year 1 yield based upon the contract purchase price of the acquired properties as compared to the Year 1 total rent is approximately 7.67%, which excludes contractual rent increases occurring in future years. The amounts in the following table are as of February 28, 2011. (dollars in thousands):

             
  Purchase
Price		   Current
Mortgage
Debt		   Effective
Interest
Rate(1)		   Portfolio-
Level
Leverage		   Rent   Base Rent Increase
(Year 2)(2)
     Year 1   Year 2
FedEx   $ 9,694     $ 6,965       6.29 %      68.2 %    $ 703     $ 703       3.78% and 3.65%
in years 6 and 11,
respectively		  
First Niagara     40,976       30,873       6.59 %      74.1 %      3,064       3,064       —  
Rockland     32,188       23,088       4.92 %      69.7 %      2,306       2,340       1.5% annually  
PNC Bank     6,664       4,324       4.58 %      63.1 %      466       466       10% after 5 years  
Rite Aid     18,576       12,808       6.97 %      68.0 %      1,404       1,404       —  
PNC     40,925       31,367       5.25 %      72.2 %      2,960       2,960       10% after 5 years  
FedEx II     31,692       16,062       6.03 %      50.7 %      2,580       2,580       1% increase in years
5 and 9		  
Walgreens     3,818       1,550       6.64 %      40.6 %      310       310       —  
CVS     44,371       23,417       6.88 %      52.8 %      3,387       3,387       5% increase every
5 years		  
CVS II     59,788       32,682       6.64 %      54.7 %      4,984       4,984       5% increase every
5 years		  
Home Depot     23,532       12,150       6.03 %      51.6 %      1,806       1,839       2% increase annually  
BSFS     15,041       3,791       6.61 %      25.2 %      1,048       1,048       6.25% every 5 years  
Advanced Auto     1,730       —       —       —       160       160       —  
Fresenius     12,462       6,029       6.63 %      48.4 %      1,023       1,023       Approximately 10%
in years 2 and 7		  
Reckit Benckieser     31,735       14,856       6.23 %      46.8 %      2,279       2,434       2.0% annually  
Jack in the Box     10,010       5,318       6.51 %      53.1 %      639       639       —  
BSFS II     26,414       —       —       —       2,150       2,150       6.25% every 5 years  
FedEx III     34,171       15,000       5.57 %      43.9 %      2,761       2,880       Increases every 30
months based on CPI,
min 5%/max 10		 % 
Jared Jewelry     5,457       —       —       —       580       580       10% increase every
5 years		  
Walgreens II     5,684       3,000       5.58 %      52.8 %      453       453       —  
IHOP     2,445       —       —       —       192       192       5% increase every
5 years		  
Advance Auto II     3,674       (6 )      —       —       308       308       —  
Super Stop & Shop     23,795       10,800       5.32 %      45.4 %      1,784       1,784       Increases approx.
7.5% every 5 years		  
IHOP II     2,300       —       —       —       180       180       10% increase every
5 years		  
IHOP III     3,319       —       —       —       239       261       10% increase every
5 years 		 

S-6

 
 

TABLE OF CONTENTS

             
  Purchase
Price		   Current
Mortgage
Debt		   Effective
Interest
Rate(1)		   Portfolio-
Level
Leverage		   Rent   Base Rent Increase
(Year 2)(2)
     Year 1   Year 2
Jared Jewelry II     1,635       —       —       —       174       182       10% increase every 5 years  
Jack in the box II     11,396       —       —       —       892       892       Increase every five years based on CPI with max 10 % 
Walgreens III     5,062       6,550 (6)      5.58 %       50.3 %(7)      385       385       —  
Dollar General     1,228       —       —       —       118       118       10% increase every
5 years		  
Tractor Supply     10,892       (9 )      —       —       885       885       10% increase every
5 years		  
Advance Auto III     4,287       (6 )      —       —       358       358       —  
CSAA/CVS     4,859       (8 )      —       —       352       352       —  
CSAA/First Fifth Bank     6,199       (8 )      —       —       440       440       10% increase every
5 years		  
CSAA/Walgreens     26,864       16,500 (8)       4.36 %       43.5 %(5)      1,948       1,948       —  
CSAA/Chase Bank     6,496       3,100       4.36 %      47.7 %      464       473       2.0% annually  
CSAA/Home Depot     8,720       3,900       4.56 %      44.7 %      621       621       —  
IHOP IV     30,000       12,450       5.32 %      41.5 %       2,448       2,516       10% increase every
5 years		  
O’Reilly Auto     2,450       (9 )      —       —       208       208       Increases 5% in
year 11		  
Walgreens IV     6,439       (9 )      —       —       499       499       —  
Walgreens V     4,767       (9 )      —       —       379       379       —  
Kum & Go     22,515       —       —       —       1,890       1,890       Increases 8% every
5 years		  
FedEx IV     3,576       (9 )      —       —       289       289       Increases 5% in
year 6		  
AutoZone     10,228       (9 )      —       —       859       859       —  
Brown Shoe/Payless     68,773       28,200       4.92 %      41.0 %      5,777       5,777       10% increase every
5 years		  
Saint Joseph’s Mercy Medical     9,838       24,700 (9)       4.51 %      51.3 %(7)      728       728       1.5% per year after
first 5 years		  
Advance Auto IV     1,270       —       —       —       106       106       —  
Kum and Go II     2,895       —       —       —       246       246       7.5% increase every
5 years		  
Tractor Supply II     2,388       —       —       —       197       197       10% increase every
5 years		  
Federal Express V     2,800       —       —       —       226       226       —  
Walgreens VI     40,071       22,900       5.86 %      57.1 %      2,805       2,805       —  
Federal Express VI     28,600       (10 )      —       —       2,119       2,119       1.5% increase
every year		  
Dollar General II     1,281       —       —       —       115       115       —  
Federal Express VII     18,800       24,300 (10)      4.55 %      51.3 %(7)      1,393       1,393       —  

S-7

 
 

TABLE OF CONTENTS

             
  Purchase
Price		   Current
Mortgage
Debt		   Effective
Interest
Rate(1)		   Portfolio-
Level
Leverage		   Rent   Base Rent Increase
(Year 2)(2)
     Year 1   Year 2
Federal Express VIII     10,891       —       —       —       893       893       —  
BB&T     3,781       —       —       —       265       273       3.0% increase
every year		  
Walgreens VII     2,950       —       —       —       261       261       —  
Federal Express IX     6,012       —       —       —       486       486       5.0% increase in
year 6		  
Dollar General III     2,867       —       —       —       248       248       3.0% increase in
year 11		  
Tractor Supply III     4,825       —       —       —       387       387       10.0% increase
every 5 years		  
DaVita Dialysis     2,848       —       —       —       232       232       —  
Dollar General IV     1,236       —       —       —       111       111       —  
Lowe’s     10,018       —       —       —       675       675       —  
Citizens Bank     3,811       3,011       6.39 %      79.0 %      344       329       2.5% increase every
year, after 7%
decrease in
August 2011		  
QuickTrip     3,330       —       —       —       291       291       —  
Dillions     5,075       —       —       —       396       396       —  
Wawa     17,209       —       —       —       1,205       1,205       —  
Walgreens TH     54,569       9,420       5.98 %      95.6 %(7)      3,737       3,737       —  
Davita Dialysis II     5,512       —       —       —       444       453       2.0% increase
every year		  
CVS III     5,199       —       —       —       377       377       —  
Automated Trading     27,275       13,800       5.66 %      50.6 %      1,836       1,836       —  
Coats & Clark     9,523       —       —       —       763       892       —  
Walgreen VIII     5,460       —       —       —       401       401       —  
Total Portfolio(3)   $ 1,017,181     $ 422,911       5.67 %      41.4 %    $ 78,029     $ 78,608        
Investment Grade Tenants (based on Rent – S&P BBB- or better)     73.4 %                                     
Average Remaining Lease Term (years)(4)     15.7 %                                     

(1) Interest rate includes the effect of in-place hedges, as applicable.
(2) Increase does not take into account lease escalations that commence in future years or adjustments based on the Consumer Price Index.
(3) Weighted average rate as of February 28, 2011.
(4) As of February 28, 2011 — Primary lease term only (excluding renewal option periods).
(5) The loan has a four-year term, with the first three years considered the initial term at an interest rate of 6.25%, and a one-year extension at an interest rate of 6.50%.

S-8

 
 

TABLE OF CONTENTS

(6) Walgreens III and Advance Auto II and III collateralize a $6.5 million mortgage note payable.
(7) Leverage ratio includes all properties that collateralize the mortgage note payable.
(8) Certain CSAA properties collateralize a $16.5 million mortgage note payable.
(9) Tractor Supply, O’Reilly Auto, Walgreens IV and V, FedEx IV, AutoZone and Saint Joseph’s Mercy collateralize a $24.7 million mortgage.
(10) FedEx VII and FedEx VIII collateralize a $24.3 million mortgage note payable.

Significant Tenants and Lease Expirations

The following table sets forth information regarding the two tenants occupying ten percent or more of the aggregate rentable square footage of our real estate investment portfolio, as of February 28, 2011:

                 
                 
Tenant Name   Nature of
Business		   Number of
Properties
Occupied by
Tenant		   Square
Feet		   Square Feet
as a % of
Total
Portfolio		   Lease
Expiration		   Average
Remaining
Lease Terms(1)		   Renewal
Options		   Annual
Rent (2)		   Annual
Rent per
Square
Foot
Brown Shoe /
Payless		     Specialty Retail       2       1,153,374       18.7 %      Feb. 2024 –
Nov. 2028		       15.0       3 renewal
options of 5
years		     $ 6,570     $ 5.70  
FedEx     Freight       12       824,803       13.4 %      Jun. 2018 –
Jul. 2024		       11.0       2 renewal
options of 5
years		     $ 12,196     $ 14.67  

(1) Remaining lease term in years as of February 28, 2011. If the portfolio has multiple locations with varying lease expirations, remaining lease term is calculated on a weighted-average basis.
(2) Annual rent in thousands.

The following table lists tenants whose rental income represented greater than 10% of consolidated income at February 28, 2011

 
FedEx     15 % 
Walgreens     13 % 
CVS     11 %          

The following is a summary of lease expirations for the next ten years as of February 28, 2011 (dollars in thousands):

         
Year of
Expiration		   Number of
Leases
Expiring		   Annualized
Base Rent(1)		   Percent of
Portfolio
Annualized Base
Rent Expiring		   Leased
Rentable
Sq. Ft.		   Percent of
Portfolio
Rentable Sq. Ft.
Expiring
2011     —       —       —       —       —  
2012     —       —       —       —       —  
2013     —       —       —       —       —  
2014     2     $ 160       0.2 %      9,841       0.2 % 
2015     —       —       —       —       —  
2016     3       482       0.6 %      27,675       0.4 % 
2017     1       179       0.2 %      12,613       0.2 % 
2018     62       5,799       6.9 %      493,965       8.0 % 
2019     5       1,224       1.5 %      86,691       1.4 % 
2020     8       2,490       3.0 %      560,096       9.1 % 
2021     4       3,564       4.3 %      136,519       2.2 % 
Total     85     $ 13,898       16.6 %      1,327,400       21.5 % 

S-9

 
 

TABLE OF CONTENTS

(1) The 85 leases listed above are with the following tenants: FedEx, Rockland Trust Company, PNC Bank, Rite Aid, IHOP, O’Reilly Auto, Advance Auto, Kum & Go, BB&T, DaVita Dialysis, Citizens Bank, Dillons and Coats and Clark.

No material tenant credit issues have been identified at this time. As of February 28, 2011, we had no tenants with rent balances outstanding over 90 days.

Selected Financial Data

The selected financial data presented below has been derived from our consolidated financial statements as of and for the nine months ended September 30, 2010 and as of and for the year ended December 31, 2009 (in thousands):

   
Balance Sheet Data:   Nine Months
Ended
September 30,
2010		   Year Ended
December 31,
2009
     (Unaudited)     
Total real estate investments, net   $ 650,437     $ 327,264  
Cash     4,406       5,010  
Restricted cash     77       43  
Prepaid expenses and other assets     8,700       4,458  
Total assets     669,611       339,277  
Mortgage notes payable     285,668       183,811  
Short-term bridge equity funds     —       15,878  
Long-term notes payable     12,790       13,000  
Total liabilities     321,111       228,721  
Total stockholders’ equity     348,500       110,556  
Total liabilities and stockholders’ equity     669,611       339,277  
Operating Data:
                  
Rental income     28,737       14,964  
Asset management fees to affiliate     850       145  
Operating income     11,073       5,491  
Interest expense     12,511       10,352  
Net loss     1,377       4,266  
Cash Flow Data:
                  
Net cash provided by (used in) operating activities     11,242       (2,526 )  
Net cash used in investing activities     (337,523 )       (173,786 )  
Net cash provided by financing activities     325,677       180,435  

Status of Distributions

On February 25, 2008, our Board of Directors declared a distribution for each monthly period commencing 30 days subsequent to acquiring our initial portfolio of real estate investments. Accordingly, our daily distributions commenced accruing on April 5, 2008. The REIT’s initial distribution payment was paid to shareholders on May 21, 2008 representing distributions accrued from April 5, 2008 through April 30, 2008. Subsequently, we modified the payment date to the 2nd day following each month-end to stockholders of record at the close of business each day during the applicable period. The distribution was calculated based on stockholders of record each day during the applicable period at a rate of $0.00178082191 per day, and equaled a daily amount that, if paid each day for a 365-day period, equaled a 6.5% annualized rate based on the share price of $10.00.

On November 5, 2008, the Board of Directors of American Realty Capital Trust, Inc. (the “Company”) approved an increase in its annual cash distribution from $.65 to $.67, paid monthly. Based on a $10.00 share price, this 20-basis point increase, effective January 2, 2009, will result in an annualized distribution rate of 6.7%. For the period from January 1, 2008 through October 20, 2009 distributions paid totaled $2,414,456,

S-10

 
 

TABLE OF CONTENTS

inclusive of $933,631 of common shares issued under the distribution reinvestment plan. We have continued to pay distributions to our shareholders each month since our initial distributions payment.

On October 5, 2009, the Board of Directors of the Company approved a special distribution of $0.05 per share payable to shareholders of record on December 31, 2009. This special distribution will be paid in January 2010, and shall be paid in addition to the current annualized distribution of $0.67 per share. In the event we do not have enough cash to make distributions in the future, we may borrow, use proceeds from this offering, issue additional securities or sell assets in order to fund distributions.

On January 27, 2010, the Board of Directors approved an increase in its annual cash distribution from $.67 to $.70, paid monthly. Based on a $10.00 share price, this 30 basis point increase, effective April 1, 2010, will result in an annualized distribution rate of 7.0%.

To date, the Company’s distributions have been paid with a combination of cash flows from operations and the proceeds from the sales of common stock. There can be no assurance that cash flows from operations will be sufficient to pay distributions in future periods.

The following table shows the sources for the payment of distributions for the year ended December 31, 2010.

       
  Year Ended December 31, 2010
     1st Quarter   2nd Quarter   3rd Quarter   4th Quarter
Distributions paid in cash   $ 1,821     $ 2,118     $ 3,097     $ 4,590  
Distributions reinvested   $ 1,407     $ 1,726     $ 2,584     $ 3,601  
Total distributions   $ 3,228     $ 3,844     $ 5,681     $ 8,191  
Source of distributions:
                                    
Cash flows provided by (used in) operations
(GAAP basis)		   $ 1,821     $ 2,118     $ 3,097     $ 4,590  
Proceeds from issuance of common stock   $ 1,407     $ 1,726     $ 2,584     $ 3,601  
Total sources   $ 3,228     $ 3,844     $ 5,681     $ 8,191  

The following table summarizes the Company’s historical and prospective distribution rate, reflecting the special distribution and increase to the annual rate effective April 1, 2010 noted above:

   
Period   Annualized Distribution Rate   Number of Months
May 2008(1) to December 2008     6.5 %      8  
January 2009 to March 2010     6.7 %      15  
Special Distribution – January 2010(2)     0.5 %      —  
       7.2 %(2)          
April 2010 to – February 28, 2011     7 %      11  

(1) initial distribution was paid in May 2008.
(2) payable to shareholders of record as of December 31, 2009, resulting in a minimum distribution rate of 7.2% for an investor who owned a common share of the Company for the full year ended December 31, 2009.

The Company determined distributions paid to shareholders in 2010 to be reported as nondividend distributions on Form 1099 for the applicable period. Accordingly, such distributions are generally not subject to ordinary income tax in the related period. This tax characterization is consistent with distributions paid to shareholders in 2009. The tax characterization of the Company’s distributions is determined on an annual basis.

The portion of the distribution that is not subject to tax in a respective tax year is considered a return of capital for tax purposes and will reduce the tax basis of a shareholder’s investment. This defers a portion of applicable taxes until the investment is sold or the Company is liquidated, at which time the shareholder will be taxed at capital gains rates. However, because each investor’s tax considerations are different, the Company recommends that investors consult with their tax advisor.

S-11

 
 

TABLE OF CONTENTS

The following is a chart of monthly distributions declared and paid since the commencement of the offering:

     
  Total   Cash   Distribution
Reinvestment
Plan
2008:
                           
April   $ —     $ —     $ —  
May     30,262       22,008       8,254  
June     49,638       35,283       14,355  
July     55,042       34,788       20,254  
August     57,584       36,519       21,065  
September     61,395       39,361       22,034  
October     61,425       41,078       20,347  
November     65,496       43,646       21,850  
December     64,442       42,876       21,566  
     $ 445,284     $ 295,559     $ 149,725  
2009:
                           
January   $ 69,263       46,227     $ 23,036  
February     76,027       50,214       25,813  
March     74,915       49,020       25,895  
April     101,282       64,375       36,907  
May     128,867       78,604       50,263  
June     180,039       106,741       73,298  
July     217,325       127,399       89,926  
August     290,230       177,620       112,610  
September     375,926       220,165       155,761  
October     455,051       264,729       190,322  
November     563,472       328,555       234,917  
December     643,125       374,715       268,410  
     $ 3,175,522     $ 1,888,364     $ 1,287,158  
2010:
                           
January(1)   $ 1,498,413     $ 855,282     $ 643,131  
February     866,051       485,025       381,026  
March     863,896       480,674       383,222  
April     1,085,719       600,607       485,112  
May     1,262,558       695,838       566,720  
June     1,496,076       821,779       674,296  
July     1,637,264       894,427       742,837  
August     1,895,554       1,028,264       867,290  
September     2,148,405       1,174,295       974,110  
October     2,381,898       1,327,982       1,053,916  
November     2,774,854       1,558,061       1,216,792  
December     3,034,272       1,704,162       1,330,110  
     $ 20,944,959     $ 11,626,396     $ 9,318,563  
2011:
                           
January   $ 3,514,813     $ 1,984,428     $ 1,530,385  
February     3,869,831       2,184,773       1,685,058  
     $ 7,384,644     $ 4,169,201     $ 3,215,443  
Distributions   $ 31,950,409     $ 17,979,520     $ 13,970,889  

(1) Includes the special distribution paid on January 19, 2010 to shareholders of record as of December 31, 2009.

S-12

 
 

TABLE OF CONTENTS

The Company, Board of Directors and Advisor share a similar philosophy with respect to paying the dividend. The dividend should principally be derived from cash flows generated from real estate operations. Specifically, funds from operations should equal or exceed distributions in a given period. If needed, the Advisor generally expects to waive its asset management fee and forego entitled reimbursements to ensure the full coverage of the Company’s distributions. The fees and reimbursement that are waived are not deferrals and accordingly, will not be paid by the Company.

Share Repurchase Program

As of December 31, 2010, we received requests cumulatively to date to redeem 302,528 common shares pursuant to our Share Redemption Plan. We approved the redemption of 100% of the redemption requests as of December 31, 2010, at an average price per share of $9.788. We funded share redemptions from the cumulative proceeds of the sale of our common shares pursuant to our Dividend Reinvestment Plan.

Status of Fees Paid and Deferred

The following table sets forth the fees and expenses paid through February 28, 2011 (amounts in thousands).

     
  Total Fees
Paid		   Total Fees
Deferred		   Total Fees
Forgiven
per Year
January 1, 2008 to December 31, 2008
                           
Organizational and Offering Expenses   $ 2,289     $ —     $ 200  
Acquisition Fees   $ 1,507     $ —     $ —  
Finance Coordination Fees   $ 1,131     $ —     $ —  
Property Management Fees   $ —     $ —     $ 100  
Asset Management Fees   $ —     $ —     $ 733  
January 1, 2009 to December 31, 2009
                           
Organizational and Offering Expenses   $ 7,202     $ —     $ 3,800  
Acquisition Fees   $ 1,690     $ —     $ —  
Finance Coordination Fees   $ 880     $ —     $ —  
Property Management Fees   $ —     $ —     $ 300  
Asset Management Fees   $ 145     $ —     $ 1,779  
January 1, 2010 to December 31, 2010
                           
Organizational and Offering Expenses   $ 10,665     $ —     $ —  
Acquisition Fees   $ 5,462     $ —     $ —  
Finance Coordination Fees   $ 2,679     $ —     $ —  
Property Management Fees   $ —     $   —     $ 833  
Asset Management Fees   $ 1,350     $ —     $ 4,010  
January 1, 2011 to February 28, 2011
                           
Organizational and Offering Expenses   $ 1,236     $ —     $ —  
Acquisition Fees   $ 1,468     $ —     $ —  
Finance Coordination Fees   $ 505     $ —     $ —  
Property Management Fees   $ —     $   —     $ 243  
Asset Management Fees   $ 500     $ —     $ —  

Amounts paid to the advisor include approximately of $10,728 million offering costs incurred by the affiliated advisor and dealer manager that exceeds 1.5% of gross offering proceeds earned cumulatively through September 30, 2010. Any organizational or offering expenses that exceed 1.5% of gross offering proceeds over the term of the offering will be the advisor’s obligation.

We pay the advisor an annualized asset management fee of up to 1.0% based on the aggregate contract purchase price of all properties. As of December 31, 2010, we paid $4.4 million to the Advisor who will determine if such fees will be partially waived in subsequent periods on a quarter-to-quarter basis.

S-13

 
 

TABLE OF CONTENTS

PROSPECTUS UPDATES

Suitability Standards

The following disclosure is to be added as the second paragraph of the section of the Prospectus entitled “Suitability Standards” on page (i).

FINRA Rule 2310(b)(3)(D) requires that we disclose the liquidity of prior public programs sponsored by American Realty Capital, our sponsor. American Realty Capital has sponsored the following eight other public programs: American Realty Capital Trust II, Inc., American Realty Capital Trust III, Inc., American Realty Capital New York Recovery REIT, Inc., American Realty Capital Healthcare Trust, Inc., American Realty Capital — Retail Centers of America, Inc., Phillips Edison — ARC Shopping Center REIT, Inc., ARC-Northcliffe Income Properties, Inc. and Business Development Corporation of America. Although the prospectus for each of these public programs states a date or time period by which it may be liquidated, each of American Realty Capital Trust II, Inc., American Realty Capital Trust III, Inc., American Realty Capital — Retail Centers of America, Inc. and ARC-Northcliffe Properties, Inc. are currently in registration with the SEC and American Realty Capital New York Recovery REIT, Inc., Phillips-Edison ARC Shopping Center, Inc., American Realty Capital Healthcare Trust, Inc. and Business Development Corporation of America are in their offering and acquisition stages. None of these public programs have reached the stated date or time period by which they may be liquidated.

The fourth bullet point under of the section of the Prospectus entitled “Suitability Standards” on page (ii) is revised to remove the requirement that Mississippi residents represent they have a net worth of at least 10 times the amount of their investment in the offering and other similar programs, as follows:

• Alabama — In addition to the suitability standards above, shares will only be sold to Alabama residents that represent that they have a liquid net worth of at least 10 times the amount of their investment in this real estate investment program and other similar programs.

S-14

 
 

TABLE OF CONTENTS

Questions and Answers about this Offering

The following language replaces the first question and response under the heading “Questions and Answers about this Offering” beginning on page (viii) of the Prospectus.

Q: Who is American Realty Capital Trust, Inc.?
A: We are the first REIT sponsored by American Realty Capital. We are a Maryland corporation organized on August 17, 2007 which qualified as a REIT beginning with the taxable year ended December 31, 2008. Since such time, American Realty Capital has sponsored eight other publicly offered REITS which include American Realty Capital New York Recovery REIT, Inc., or Recovery REIT, a Maryland corporation organized on October 6, 2009, Phillips Edison — ARC Shopping Center REIT, Inc., or PEARC, a Maryland corporation organized on October 13, 2009, American Realty Capital — Retail Centers of America, Inc., or ARC RCA, a Maryland corporation organized on July 29, 2010, American Realty Capital Healthcare Trust, Inc., or ARC HT, a Maryland corporation organized on August 23, 2010, American Realty Capital Trust II, Inc., or ARCT II, a Maryland corporation organized on September 10, 2010, ARC — Northcliffe Income Properties, Inc., or ARC Northcliffe, formerly known as Corporate Income Properties — ARC, Inc., a Maryland corporation organized on September 29, 2010 and American Realty Capital Properties, Inc., a Maryland corporation organized on December 2, 2010. Additionally, American Realty Capital has sponsored Business Development Corporation of America, Inc., or Business Development Corporation, a Maryland corporation organized on May 5, 2010. Business Development Corporation is a publicly offered specialty finance company which has elected to be treated as a business development company under the Investment Company Act of 1940. For additional information concerning these other American Realty Capital-sponsored REITs, please see the section in this prospectus entitled “Conflicts of Interest”.

The following language replaces the third question and response under the heading “Questions and Answers about this Offering” on page (viii) of the Prospectus.

Q: What is the experience of your officers and directors both in real estate in general and with net leased assets in particular?
A: Nicholas S. Schorsch has been the chairman of the board and chief executive officer of our company since its formation in August 2007. Mr. Schorsch has been the chief executive officer of our advisor and property manager since their formation in August 2007. Mr. Schorsch has been the chairman and chief executive officer of Recovery REIT since its formation in October 2009 and chief executive officer of Recovery REIT’s advisor and property manager since their formation in November 2009. Mr. Schorsch has been the chairman and chief executive officer of ARC RCA and chief executive officer of the ARC RCA’s advisor since their formation in July and May 2010, respectively. Mr. Schorsch has been the chairman and chief executive officer of ARC HT and chief executive office of the ARC HT’s advisor and property manager since their formation in August 2010. Mr. Schorsch has been chairman and the chief executive officer of Business Development Corporation since its formation in May 2010. Mr. Schorsch has been the chairman and chief executive officer of ARCT II and the chief executive officer of the advisor and property manager of ARCT II since their formation in September 2010. Mr. Schorsch has been the chairman and chief executive officer of ARCT III and the chief executive officer of the advisor and property manager of ARCT III since their formation in October 2010. Mr. Schorsch has been the president and director of ARC Northcliffe since its formation in September 2010. Mr. Schorsch also has been the chairman and chief executive officer of American Realty Capital Properties, Inc., or ARCP, since its formation in December 2010, and chairman and chief executive officer of its advisor since its formation in November 2010.

William M. Kahane has been a director and the president, treasurer and chief operating officer of our company since its formation in August 2007. Mr. Kahane has been president, chief operating officer and treasurer of our advisor and property manager since their formation in August 2007. Mr. Kahane has been a director and the president, chief operating officer and treasurer of Recovery REIT since its formation in October 2009. Mr. Kahane has been the president, chief operating officer and treasurer of Recovery REIT’s advisor and property manager since their formation in November 2009. Mr. Kahane has been the director of PEARC since its formation in October 2009. Mr. Kahane has been a director and the president

S-15

 
 

TABLE OF CONTENTS

and chief operating officer of ARC RCA since its formation in July 2010. Mr. Kahane has been the president and chief operating officer of ARC RCA’s advisor since its formation in May 2010. Mr. Kahane has been a director and the president and treasurer of ARC HT since its formation in August 2010. Mr. Kahane has been the president and chief operating officer of ARC HT’s advisor and property manager since their formation in August 2010. Mr. Kahane has been the director, president and chief operating officer of Business Development Corporation since its formation in May 2010. Mr. Kahane has been a director and the president and treasurer of ARCT II since its formation in September 2010. Mr. Kahane has been the president and treasurer of the advisor and property manager for ARCT II since their formation in September 2010. Mr. Kahane has been a president, chief operating officer and treasurer of ARCT III since its formation in October 2010. Mr. Kahane has been the president, chief operating officer and treasurer of the advisor and property manager for ARCT III since their formation in October 2010. Mr. Kahane has been the chief operating officer of ARC — Northcliffe since its formation in September 2010. Mr. Kahane also has been the president, chief operating officer and a director of ARCP since its formation in December 2010 and president and chief operating officer of its advisor since its formation in November 2010.

Please also see the section entitled “Management” in this prospectus.

S-16

 
 

TABLE OF CONTENTS

Estimated Use of Proceeds

The following language replaces the disclosure under the heading “Prospectus Summary — Estimated Use of Proceeds of This Offering” on page 5 of the Prospectus.

Depending primarily on the number of shares we sell in this offering, we estimate for each share sold in this offering approximately $8.71 (assuming no shares available under our distribution reinvestment plan are sold) will be available for the purchase of real estate. We will use the remainder of the offering proceeds to pay the costs of the offering, including selling commissions and the dealer manager fee, and to pay a fee to our advisor for its services in connection with the selection and acquisition of properties. We will not pay selling commissions or a dealer manager fee on shares sold under our distribution reinvestment plan. The table below sets forth our estimated use of proceeds from this offering, including an update to such information provided previously for the period ended September 30, 2010:

               
               
  Actual Sale of 41,908,409 Shares as of September 30, 2010
(Not including DRIP)		   Actual Sale of 32,945,591 Shares for the Period From October 1, 2010 to February 28, 2011
(Note including DRIP)		   Actual Sale of 74,854,000 Shares as of February 28, 2011
(Not including DRIP)		   Maximum Offering Amount
(Not Including DRIP)
     Amount   Percent   Amount   Percent   Amount   Percent   Amount   Percent
Gross Offering Proceeds   $ 415,015,000       100.0 %    $ 317,456,000       100.0 %    $ 732,471,000       100.0 %    $ 1,500,000,000       100.0 % 
Less Public Offering Expenses:
                                                                        
Selling Commissions and Dealer Manager Fee     37,899,000       9.1 %      27,396,000       8.6 %      65,295,000       8.9 %      150,000,000       10.0 % 
Organization and Offering Expenses     16,953,000       4.1 %      4,439,000       1.4 %      21,392,000       2.9 %      22,500,000       1.5 % 
Sub-total – public offering expenses     54,852,000       13.2 %      31,835,000       10.0 %      86,687,000       11.8 %      172,500,000       11.5 % 
                                                                          
Amount Available for Investment     360,163,000       86.8 %      285,621,000       90.0 %      645,784,000       88.2 %      1,327,500,000       88.5 % 
Acquisition and Development:
                                                                        
Acquisition and Advisory Fees     6,509,000       1.6 %      3,618,000       1.1 %      10,127,000       1.4 %      13,275,000       0.9 % 
Acquisition Expenses     3,525,000       0.8 %      2,288,000       0.7 %      5,813,000       0.8 %      6,000,000       0.4 % 
Initial Working Capital Reserve     —       0.0 %      —       0.0 %      —       0.0 %      1,500,000       0.1 % 
Amount Invested in Properties   $ 350,129,000       84.4 %    $ 279,715,000       88.1 %    $ 629,844,000       86.0 %    $ 1,306,725,000       87.1 % 

For the five months ended February 28, 2011 (October 1, 2010 to February 28, 2011), the amount available for investment is 90.0% of gross offering proceeds raised during the period. Such amount for the period from inception to February 28, 2011 is 88.2% at noted in the above table. With respect to net proceeds available to be invested in properties, 88.1% of the proceeds received was invested. The actual results over the recently completed five-month period coupled with our anticipated results during the remainder of the offering position the Company to achieve its estimate of investing 87.1% of gross proceeds raised in real estate investments. As presented within the “Compensation” section included in this prospectus, organization and offering expenses will not exceed 1.5% of gross proceeds at the end of the offering. Our affiliated advisor is responsible for the payment of any organization and offering expenses to the extent they exceed 1.5% of gross offering proceeds.

The following language replaces the disclosure under the heading “Estimated Use of Proceeds” on page 47 of the Prospectus.

The following table sets forth information about how we intend to use the proceeds raised in this offering, including an update to such information provided previously for the period ended September 30, 2010. The table assumes that we sell the maximum offering of 150,000,000 shares of common stock pursuant to this. Many of the figures set forth below with respect to the maximum offering amount represent management’s best estimate since they cannot be precisely calculated at this time. Assuming a maximum offering, we expect that approximately 87.115% of the money that stockholders invest will be used to buy real estate or make other investments and approximately 0.1% will be used for working capital, while the remaining approximately 12.885% will be used to pay expenses and fees including the payment of fees to Realty Capital Advisors, LLC, our advisor, and Realty Capital Securities, LLC, our dealer manager.

S-17

 
 

TABLE OF CONTENTS

For the five months ended February 28, 2011 (October 1, 2010 to February 28, 2011), the amount available for investment is 90.0% of gross offering proceeds raised during the period. Such amount for the period from inception to February 28, 2011 is 88.2% at noted in the above table. With respect to net proceeds available to be invested in properties, 88.1% of the proceeds received was invested. The actual results over the recently completed five-month period coupled with our anticipated results during the remainder of the offering position the Company to achieve its estimate of investing 87.1% of gross proceeds raised in real estate investments. As presented within the “Compensation” section included in this prospectus, organization and offering expenses will not exceed 1.5% of gross proceeds at the end of the offering. Our affiliated advisor is responsible for the payment of any organization and offering expenses to the extent they exceed 1.5% of gross offering proceeds.

               
               
  Actual Sales of Shares as of September 30, 2010 (Not including DRIP)(1)   Actual Sales of Shares for the Period From October 1, 2010 to February 28, 2011 (Not including DRIP)(2)   Actual Sale of Sharesas of February 28, 2011 (Not including DRIP)(3)   Maximum Offering Amount (Not IncludingDRIP)(4)
     Amount   Percent   Amount   Percent   Amount   Percent   Amount   Percent
Gross Offering Proceeds   $ 415,015,000       100.0 %    $ 317,456,000       100.0 %    $ 732,471,000       100.0 %    $ 1,500,000,000       100.0 % 
Less Public Offering Expenses:
                                                                        
Selling Commissions and Dealer Manager Fee(5)     37,899,000       9.1 %      27,396,000       8.6 %      65,295,000       8.9 %      150,000,000       10.0 % 
Organization and Offering Expenses(6)     16,953,000       4.1 %      4,439,000       1.4 %      21,392,000       2.9 %      22,500,000       1.5 % 
Sub-total – Public Offering Expenses     54,852,000       13.2 %      31,835,000       10.0 %      86,687,000       11.8 %      172,500,000       11.5 % 
                                                                          
Amount Available for Investment(7)     360,163,000       86.8 %      285,621,000       90.0 %      645,784,000       88.2 %      1,327,500,000       88.5 % 
Acquisition and Development:
                                                                        
Acquisition and Advisory Fees(8)     6,509,000       1.6 %      3,618,000       1.1 %      10,127,000       1.4 %      13,275,000       0.9 % 
Acquisition Expenses(9)     3,525,000       0.8 %      2,288,000       0.7 %      5,813,000       0.8 %      6,000,000       0.4 % 
Initial Working Capital Reserve(10)     —       0.0 %      —       0.0 %      —       0.0 %      1,500,000