NAREIT Investor Presentation JUNE 2020
Q2 2020 Update
IMPACT OF STATES REOPENING Spirit's top states reopened to positive trends with a rebound in demand in select industries PERCENTAGE OF 2019 PERCENTAGE OF 2019 MOBILITY AT RETAIL ANNUAL AVERAGE OF DAILY OPEN TABLE RESERVATIONS AND RECREATION SITES MILES TRAVELLED 40 % 160 % 120 % 5-Week Baseline from Jan 3rd to Feb 6th 140 % 100 % 30 % 120 % 80 % 2019 Average 20 % 100 % 60 % 80 % 10 % 40 % 60 % 0 % 20 % 40 % 16-Apr 30-Apr 14-May 28-May 21-Feb 22-Mar 21-Apr 21-May 24-Feb 24-Mar 24-Apr 24-May Te Texas Florida Georg rgia “While we do not have the final results for “The week after the stimulus was better “In our early results, we are seeing very April, I am very encouraged with the than the week of the stimulus. And then 2 strong demand at HomeGoods and in positive trends that we saw, and we weeks after it was better than 1 week our home categories across all of our expect the results to be positive as well.” after. So we are seeing that sequential banners, in addition to a couple of improvement. And I think it's more to do other categories.” with the gradual relaxing of shelter-in- place orders.” - Marcus Lemonis, Camping World CEO, May 7, 2020 - Thomas Greco, Advanced Auto CEO, May 19, 2020 - Ernie L. Herrman, TJX Companies, Inc. CEO, May 21, 2020 Source: Open Table, Google Data, Geopath (originally the Traffic Audit Bureau for Media Measurement Incorporated) and earnings transcripts. Note: Results in states that recently reopened may not be indicative of results that may occur in other states. Reservations, mobility and traffic patterns in the identified states may not be indicative of reservations, mobility and traffic patterns that may occur in other states or the ability or willingness of our tenants in such states to pay rent on a timely basis or at all. 3 Please see Appendix at the back of this presentation for Reporting Definitions and Explanations, Non-GAAP Reconciliations, and a disclosure regarding Forward-Looking Statements.
MILES TRAVELED APRIL VS. MAY 2020 Spirit Update - April 13, 2020 When Spirit provided the April % Change in Miles update, traffic patterns were Traveled from 2019 broadly negative across most -100% states Currently, traffic count is flat 0% to positive on average where Spirit’s tenants operate +100% May 24, 2020 3.1 % 1.2 % % Change in Miles 1.4 % % Change in Miles Traveled from 2019 Traveled from 2019 -100% -30% to -50% 12.1 % 15.6 % -10% to -30% Flat 32.7 % +10% to 30% 0% 33.9 % +30% to 50% Over 50% As a percentage of April and Not Available +100% May Base Rent Source: Geopath (originally the Traffic Audit Bureau for Media Measurement Incorporated). Note: Traffic patterns may not be indicative of the ability or willingness of our tenants in such states to pay rent on a timely basis or at all. 4 Please see Appendix at the back of this presentation for Reporting Definitions and Explanations, Non-GAAP Reconciliations, and a disclosure regarding Forward-Looking Statements.
APRIL AND MAY TENANT UPDATE 73% of April Base Rent 1 Spirit collected 65% of May Base Rent (May 28) 1 By April 28 th , Spirit had collected 67% of April Base Rent; Spirit anticipates additional collection for May Top 10 Tenants Top 20 Tenants 79% 2 79% 2 9 7 17 15 of Spirit’s top 10 tenants of Spirit’s top 10 tenants of Spirit’s top 20 tenants of Spirit’s top 20 tenants paid April Base Rent, paid May Base Rent, paid April Base Rent, paid May Base Rent, representing 90.3% representing 68.6% representing 86.1% representing 72.2% of top 10 tenant rent of top 10 tenant rent of top 20 tenant rent of top 20 tenant rent 3 Note: All tenant updates are based on available information as of May 28, 2020. 1 Including mortgage payments, income collected was 74% and 66% for April and May, respectively, as of May 28, 2020. 2 Represents percentage of April and May Base Rent received. 3 Includes one tenant that had a partial deferral on 25% of its rent in May. 5 Please see Appendix at the back of this presentation for Reporting Definitions and Explanations and a disclosure regarding Forward-Looking Statements.
QUARTER-TO-DATE RENT COLLECTION Deferrals 20. 20.6% 6% Abatements 1.1 .1% Base Rent Outstanding¹ Base Rent 30.6% 30.6% Bankruptcy Received 0.5% 0. 5% 69.4% 69.4% Expected Deferrals 4.1% 4. 1% Other 2 4.3% 4. 3% Measured approach to deferral requests Approved deferral periods ranging from 1-6 months, 9.3% of Base Rent paid April and deferred May; average deferral period of 2.7 months 2.2% of Base Rent deferred April and paid May Average payback is 11.2 months starting October Received extended lease term for all abated rent 2020 Note: All tenant updates are based on available information as of May 28, 2020. 1 Not inclusive of all deferral negotiations ongoing. 6 2 Other includes tenants where no resolution has been reached as of May 28, 2020. Please see Appendix at the back of this presentation for Reporting Definitions and Explanations, Non-GAAP Reconciliations, and a disclosure regarding Forward-Looking Statements.
RENT COLLECTION BY OWNERSHIP TYPE Publicly owned and investment grade tenants outperformed May Collection 2 April & May % Base Rent 1 April Collection 2 (As of May 28) Collection 2 Retail 80.7 % 68.2 % 58.6 % 63.4 % Public 46.4 % 79.9 % 77.5 % 78.7 % Private Equity 28.5 % 58.3 % 32.1 % 45.2 % Other 25.1 % 57.7 % 53.7 % 55.7 % Actual IG 21.0 % 100.0 % 97.1 % 98.5 % Non IG 79.0 % 59.7 % 48.4 % 54.1 % Industrial 11.6 % 94.6 % 96.8 % 95.7 % Public 63.0 % 100.0 % 100.0 % 100.0 % Private Equity 31.5 % 86.9 % 94.7 % 90.9 % Other 5.5 % 74.6 % 74.6 % 74.6 % Actual IG 23.0 % 100.0 % 100.0 % 100.0 % Non IG 77.0 % 93.1 % 95.9 % 94.4 % Office & Other 7.7 % 96.0 % 89.2 % 92.6 % Public 51.0 % 96.5 % 100.0 % 98.2 % Private Equity 15.4 % 100.0 % 100.0 % 100.0 % Other 33.6 % 93.3 % 68.2 % 80.7 % Actual IG 47.5 % 100.0 % 100.0 % 100.0 % Non IG 52.5 % 92.3 % 79.5 % 69.4 % Total 100.0 % 73.4 % 65.3 % 69.4 % Public 48.7 % 84.4 % 82.6 % 83.5 % Private Equity 27.8 % 63.7 % 43.3 % 53.5 % Other 23.5 % 62.1 % 55.9 % 59.0 % Actual IG 23.2 % 100.0 % 97.9 % 98.9 % Non IG 76.8 % 65.4 % 55.4 % 60.4 % Note: Investment grade ratings represent the credit rating of our tenants, their subsidiaries or affiliated companies. Actual ratings, if available, based on S&P or Moody’s are used. Publicly owned represents ownership of our tenants or their affiliated companies. Non investment grade includes equivalent ratings, if available, based on shadow ratings from Moody’s. 1 Represents percentage of Base Rents for April and May combined. 7 2 Represents percentage of total Base Rent for such period and such ownership category collected. Percentages may include immaterial rounding in certain instances. Please see Appendix at the back of this presentation for Reporting Definitions and Explanations, Non-GAAP Reconciliations, and a disclosure regarding Forward-Looking Statements.
RENT COLLECTION BY INDUSTRY % of % of % May INDUSTRY % Base % April April & May April & May Collected 2 Rent 1 Collected 2 Collected 2 Deferred 2 As of May 28 Convenience Stores 8.4 % 85.4 % 85.4 % 85.4 % 0.0 % Health and Fitness 7.3 % 44.6 % 1.5 % 23.0 % 41.2 % Restaurants - Quick Service 7.0 % 94.6 % 55.3 % 74.9 % 22.2 % Restaurants - Casual Dining 6.2 % 28.4 % 41.7 % 35.0 % 37.1 % Movie Theaters 5.6 % 20.8 % 2.0 % 11.4 % 72.9 % Drug Stores / Pharmacies 5.0 % 100.0 % 100.0 % 100.0 % 0.0 % Entertainment 3.7 % 12.7 % 12.7 % 12.7 % 84.6 % Grocery 3.6 % 100.0 % 100.0 % 100.0 % 0.0 % Car Washes 3.4 % 64.0 % 64.0 % 64.0 % 36.0 % Dealerships 3.2 % 100.0 % 100.0 % 100.0 % 0.0 % Home Improvement 3.1 % 100.0 % 97.4 % 98.7 % 1.3 % Dollar Stores 3.1 % 100.0 % 99.3 % 99.7 % 0.0 % Home Décor 2.7 % 16.1 % 2.6 % 9.3 % 85.9 % Specialty Retail 2.5 % 86.4 % 84.5 % 85.5 % 0.0 % Warehouse Club and Supercenters 2.4 % 100.0 % 100.0 % 100.0 % 0.0 % Automotive Service 2.3 % 47.8 % 53.7 % 50.8 % 6.6 % Department Stores 2.0 % 84.5 % 66.6 % 75.5 % 13.8 % Home Furnishings 1.9 % 56.6 % 7.0 % 31.8 % 43.2 % Education 1.7 % 13.7 % 28.1 % 20.9 % 74.4 % Sporting Goods 1.6 % 96.4 % 92.9 % 94.7 % 0.0 % Automotive Parts 1.2 % 100.0 % 100.0 % 100.0 % 0.0 % Office Supplies 0.8 % 91.0 % 91.0 % 91.0 % 0.0 % Other 0.6 % 99.0 % 92.7 % 95.9 % 4.1 % Medical Office 0.6 % 100.0 % 100.0 % 100.0 % 0.0 % Pet Supplies & Service 0.5 % 100.0 % 92.9 % 96.4 % 0.0 % Apparel 0.3 % 48.0 % 31.9 % 40.0 % 0.0 % RETAIL 80.7 % 68.2 % 58.6 % 63.4 % 25.0 % Distribution 7.6 % 97.9 % 97.8 % 97.9 % 0.0 % Manufacturing 4.0 % 88.0 % 95.1 % 91.6 % 8.4 % INDUSTRIAL 11.6 % 94.6 % 96.8 % 95.7 % 2.9 % Professional Office 3.1 % 95.6 % 100.0 % 97.7 % 2.2 % Medical Office 2.6 % 93.4 % 93.3 % 93.3 % 0.0 % Data Center 1.3 % 100.0 % 100.0 % 100.0 % 0.0 % Hotel 0.7 % 100.0 % 0.0 % 50.0 % 0.0 % OFFICE & OTHER 7.7 % 96.0 % 89.2 % 92.6 % 0.9 % TOTAL 100.0 % 73.4 % 65.3 % 69.4 % 20.6 % 1 Represents Base Rents for April and May combined. 8 2 Represents percentage of total Base Rent for such period and such industry collected and deferred. Percentages may include immaterial rounding in certain instances. Please see Appendix at the back of this presentation for Reporting Definitions and Explanations, Non-GAAP Reconciliations, and a disclosure regarding Forward-Looking Statements.
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