UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):May 3, 2013 (April 29, 2013)
American Realty Capital Trust V, Inc.
(Exact Name of Registrant as Specified in Charter)
| Maryland | | 333-187092 | | 90-0929989 |
(State or other jurisdiction of incorporation or organization) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
405 Park Avenue
New York, New York 10022
(Address, including zip code, of Principal Executive Offices)
Registrant's telephone number, including area code: (212) 415-6500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01. Completion of Acquisition or Disposition of Assets.
Dollar General Store – Mission, Texas
On April 29, 2013, American Realty Capital Trust V, Inc. (the “Company”) closed its first acquisition – the fee-simple interest in a build-to-suit Dollar General store located in Mission, Texas for a contract purchase price of $1.1 million, exclusive of closing costs. The Company acquired the property through an indirectly wholly owned subsidiary of its operating partnership. The seller has no material relationship with the Company and the acquisition was not an affiliated transaction.
The Company funded 100% of the acquisition of the property with cash from its ongoing initial public offering.
The property is 100% leased to a subsidiary of Dollar General Corporation (NYSE: “DG”), which guarantees the lease and carries an investment grade credit rating as determined by major credit rating agencies. The lease is net whereby the tenant is required to pay substantially all operating expenses, including all costs to maintain and repair the roof and structure of the building, in addition to base rent.
The following table provides information about the property relating to the assignor, lease commencement and termination dates, rentable square feet, annualized rental income, rental escalations and renewal options.
| Assignor | Lease
Commencement Date | Lease
Termination Date | Rentable Square
Feet | Annualized Rental
Income | Rental Escalations | Renewal Options |
| Ladder Capital Finance LLC | April 2013 | April 2028 | 9,100 | $0.1 million | None | Three 5-Year Options |
Item 8.01. Other Events.
As announced in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 10, 2013, the Company’s board of directors authorized, and the Company declared, a distribution rate, which will be calculated based on stockholders of record each day during the applicable period at a rate of $0.00452054795 per day, based on a per share price of $25.00. The distributions will begin to accrue upon the earlier of: (i) June 1, 2013; and (ii) 15 days following the Company’s initial property acquisition, which occurred on April 29, 2013. Thus, such distributions will begin to accrue on May 14, 2013. The distributions will be payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month.
Item 9.01. Financial Statements and Exhibits.
(a)Financial Statements of Business Acquired (Lessees)
Set forth in this Item 9.01(a) are summary financial statements of the parent guarantor to the lease, Dollar General Corporation as described under Item 2.01 of this Current Report on Form 8-K.
Dollar General Corporation currently files its financial statements in reports filed with the U.S. Securities and Exchange Commission, and the following summary financial data regarding Dollar General Corporation are taken from such filings:
| | Fiscal Year Ended | |
| (Amounts in Thousands) | | February 1,
2013
(Audited) | | | February 3,
2012
(Audited) | | | January 28,
2011
(Audited) | |
| Consolidated Condensed Statements of Income | | | | | | | | | |
| Net sales | | $ | 16,022,128 | | | $ | 14,807,188 | | | $ | 13,035,000 | |
| Operating profit | | | 1,655,276 | | | | 1,490,804 | | | | 1,274,065 | |
| Net income | | | 952,662 | | | | 766,685 | | | | 627,857 | |
| Consolidated Condensed Balance Sheets | | | | | | | | | | | | |
| Total assets | | $ | 10,367,682 | | | $ | 9,688,520 | | | $ | 9,546,222 | |
| Long-term obligations | | | 2,771,336 | | | | 2,617,891 | | | | 3,287,070 | |
| Total liabilities | | | 5,382,352 | | | | 5,013,938 | | | | 5,491,743 | |
| Total shareholders’ equity | | | 4,985,330 | | | | 4,674,582 | | | | 4,054,479 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | AMERICAN REALTY CAPITAL TRUST V, INC. |
| | | |
| Date: May 3, 2013 | By: | /s/ Nicholas S. Schorsch |
| | Nicholas S. Schorsch Chief Executive Officer and Chairman of the Board of Directors |
