Spirit Realty Capital(SRC) - 2022 Q3 - Quarterly Report

Glossary The glossary provides definitions for key terms and financial measures used throughout the report - The glossary provides definitions for key terms and financial measures used throughout the report, including various debt instruments (e.g., 2019 Credit Facility, Senior Unsecured Notes), equity programs (e.g., ATM Programs), and non-GAAP financial measures (e.g., Adjusted Debt, AFFO, EBITDAre, FFO)[8][9] PART I — FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls Item 1. Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific points in time | Metric | September 30, 2022 (Thousands) | December 31, 2021 (Thousands) | Change (Thousands) | | :--------------------------------- | :----------------------------- | :---------------------------- | :----------------- | | Total assets | $8,341,510 | $7,330,870 | +$1,010,640 | | Total liabilities | $3,820,720 | $3,331,071 | +$489,649 | | Total stockholders' equity | $4,520,790 | $3,999,799 | +$520,991 | - Total assets increased by over $1 billion, primarily driven by an increase in real estate assets held for investment, net, from $6,445,527 thousand to $7,258,538 thousand, and a significant increase in cash and cash equivalents from $17,799 thousand to $109,829 thousand[13] - Total debt, net, increased from $3,012,592 thousand to $3,518,455 thousand, mainly due to new term loans of $791,791 thousand, partially offset by a decrease in revolving credit facilities[13] Consolidated Statements of Operations This section details the company's revenues, expenses, net income, and earnings per share over specific periods | Metric (Thousands) | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total revenues | $182,904 | $152,568 | $526,235 | $452,335 | | Total expenses | $129,305 | $111,900 | $378,773 | $335,151 | | Net income | $76,640 | $40,878 | $215,436 | $127,333 | | Net income per share attributable to common stockholders - Basic | $0.54 | $0.32 | $1.56 | $1.02 | | Dividends declared per common share issued | $0.6630 | $0.6380 | $1.9390 | $1.8880 | - Net income attributable to common stockholders significantly increased for both the three and nine months ended September 30, 2022, primarily driven by higher rental income and substantial gains on disposition of assets[15] - Basic net income per share attributable to common stockholders rose from $0.32 to $0.54 for the three-month period and from $1.02 to $1.56 for the nine-month period year-over-year[15] Consolidated Statements of Comprehensive Income This section presents the company's net income and other comprehensive income components, reflecting total changes in equity from non-owner sources | Metric (Thousands) | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income attributable to common stockholders | $74,053 | $38,291 | $207,673 | $119,570 | | Net reclassification of amounts from AOCIL | $40,204 | $702 | $41,608 | $2,106 | | Total comprehensive income | $114,257 | $38,993 | $249,281 | $121,676 | - Total comprehensive income saw a substantial increase, particularly for the three months ended September 30, 2022, largely due to a significant net reclassification of amounts from Accumulated Other Comprehensive Income (Loss) (AOCIL) of $40,204 thousand, compared to $702 thousand in the prior year[17] Consolidated Statements of Stockholders' Equity This section outlines changes in the company's equity accounts, including common stock, capital in excess of par value, accumulated deficit, and comprehensive income | Metric (Thousands) | September 30, 2022 | December 31, 2021 | | :------------------------------------ | :----------------- | :---------------- | | Total Stockholders' Equity | $4,520,790 | $3,999,799 | | Common Stock Shares Outstanding | 139,661,826 | 127,699,235 | | Capital in Excess of Common Stock Par Value | $7,217,245 | $6,673,440 | | Accumulated Deficit | $(2,905,376) | $(2,840,356) | | Accumulated Other Comprehensive Income (Loss) | $35,761 | $(5,847) | - Total stockholders' equity increased by $520,991 thousand from December 31, 2021, to September 30, 2022, primarily driven by net income, issuance of common stock, and a positive shift in accumulated other comprehensive income[13][20][21] - The number of common shares outstanding increased from 127,699,235 to 139,661,826, contributing to an increase in capital in excess of common stock par value by $543,805 thousand[13][20][21] Consolidated Statements of Cash Flows This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flow Activity (Thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $338,885 | $275,383 | | Net cash used in investing activities | $(1,002,541) | $(681,338) | | Net cash provided by financing activities | $755,686 | $338,221 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $92,030 | $(67,734) | - The company experienced a net increase in cash, cash equivalents, and restricted cash of $92,030 thousand for the nine months ended September 30, 2022, a significant improvement from a net decrease of $67,734 thousand in the prior year[28] - Cash provided by operating activities increased by $63,502 thousand, while cash used in investing activities increased by $321,203 thousand, primarily due to higher real estate acquisitions[28] - Net cash provided by financing activities more than doubled, increasing by $417,465 thousand, driven by term loan borrowings and common stock issuances[28] Notes to Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, investments, debt, and other financial aspects NOTE 1. ORGANIZATION This note describes the company's corporate structure, its status as a REIT, and its primary business activities - Spirit Realty Capital, Inc. operates as a self-administered and self-managed REIT, primarily investing in and managing a portfolio of single-tenant, operationally essential real