american finance trust

3Q 2013REPORT3Q 2016

REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

American Finance Trust, Inc.(formerly American Realty Capital Trust V, Inc.)

American Finance Trust



Dear Fellow Shareholders,

We are pleased to report that American Finance Trust, Inc. (“AFIN”) performed consistent with our expectations during the third quarter of 2016, as we continued to execute on our stated investment objectives of acquiring and managing a diversified portfolio of net leased commercial real estate.

These results demonstrate the commitment of AFIN’s management team and its sponsor, AR Global Investments, LLC (“AR Global”), in seeking exceptional performance for you, our shareholders. As you may know, AR Global began almost a decade ago as a sponsor and manager to a number of public non-listed alternative investment vehicles, designed to address an unmet investor need for a combination of current cash distributions and capital preservation. Over its history, through volatile markets and economic challenges, AR Global has demonstrated its success in designing, building and operating companies like AFIN, while holding to its founding principle of putting investors first.

Today, AR Global manages $14 billion of real estate assets across a platform of seven public non-traded and two New York Stock Exchange-listed real estate investment trusts or REITs. We encourage you to visit www.ar-global.com to access up-to-date information on AFIN and other AR Global-sponsored investment programs.

AFIN finished the third quarter with a portfolio of 458 properties located in 37 states that were 100% leased. On September 7, 2016, we announced that a special committee of our board of directors had unanimously approved the acquisition of American Realty Capital – Retail Centers of America, Inc. (“RCA”). The transaction creates a premier diversified REIT with a retail focus, with an enterprise value of $3.9 billion. AFIN’s scale is significantly enhanced by combining two highly complementary U.S. real estate portfolios comprised of 493 properties aggregating 20.8 million rentable square feet, while the company’s capital structure is also meaningfully improved. Increased scale will also increase liquidity options for AFIN going forward, while immediately broadening tenant diversification, and creating meaningful cost savings. Lastly, the transaction creates a defined management internalization option, benefitting shareholders of both companies.

Under the terms of the agreement, RCA shareholders will receive 0.385 shares of AFIN common stock and $0.95 in cash for each share of RCA common stock they own. The approximately 90% stock component of the transaction is expected to be tax-free to shareholders. For more details on the structure of the transaction and its benefits, please visit the AFIN website, accessible through the AR Global website portal. Shareholders will be asked to vote to approve the combination at a special shareholders meeting currently scheduled for January 25, 2017. Materials and instructions for voting will be mailed to you soon.

As demonstrated again this quarter, we remain committed to acquiring and managing a diversified portfolio in line with our core investment objectives, seeking exceptional performance, aligning ourselves with our shareholders and communicating clearly with our constituents. Above all, we are focused on delivering an exceptional experience that puts you, our shareholders, first. Together with AR Global, we look forward to continuing to deliver performance for you in line with these goals.

Sincerely,

Michael Weil Chief Executive Officer and President


3Q 2016REPORT

AFIN is designed to protect shareholder capital and provide attractive, stable cash distributions. AFIN manages and optimizes its investments in its portfolio of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants (the “Net Lease Portfolio”) and selectively invests in additional net lease properties. To a lesser extent, AFIN also invests in commercial real estate mortgage loans and other commercial real estate-related debt investments.

Distribution InformationDistribution Rate1 (as of September 30, 2016)6.6%

Distribution FrequencyMonthly

Key Facts (as of September 30, 2016)Effectiveness DateApril 4, 2013

Total Capital Raised2

$1.6 billion

Investment Objectives

1 Distribution rate of 6.6% represents per annum distributions of $1.65 per share based on initial IPO price per share of $25.00. Distribution rate is 6.8% based on $24.17 per share, AFIN’s estimated per-share net asset value (“Estimated Per-Share NAV”) as of December 31, 2015.

2 Includes proceeds raised through the sale of common stock and shares issued pursuant to the distribution reinvestment plan, net of share repurchases.3 Accounting principles generally accepted in the United States of America.4 Straight-line rental.5 Aggregate contract purchase price of properties acquired, excluding acquisition related costs and mortgage premiums resulting from debt assumed in

connection with property acquisitions.6 Total debt to total assets.

Net Lease Portfolio Highlights (as of September 30, 2016)

Property Highlights

Number of Properties 458

Rentable Square Feet 13,327,551

Percentage Leased 100.0%

Weighted-Average Remaining Lease Term (Yrs.)

9.4

Financial Highlights

Property Purchase Price5 $2.2 billion

Corporate Leverage Ratio6 48.6%

Weighted-Average Effective Interest Rate

4.76%


States with AFIN properties

Top States*(Annualized GAAP3 SLR4 Income %)

New Jersey20.0%

Top 5 Tenants IndustryCredit Rating

Details

Annualized GAAP SLR Income %

SunTrust Bank Retail Banking S&P: BBB+ 17.8%

Sanofi US Healthcare S&P: AA 11.4%

C&S Wholesale Grocer Distribution S&P: BB 10.2%

AmeriCold Refrigerated Warehousing S&P: B+ 7.7%

Merrill Lynch, Pierce, Fenner & Smith Financial Services S&P: A 7.7%

Total 54.8%

Tenant Quality (as of September 30, 2016)

Other45.2%

17.8%

11.4%

Top 5 Tenants 54.8%

7.7%7.7%

10.2%

Geographic Diversification

Georgia11.0%

Massachusetts8.1%

Florida7.6%

North Carolina6.7%

Alabama5.4%

* As of September 30, 2016, we had tenants in 36 states + DC.

Other41.2%

Factsheet



Portfolio Details (as of September 30, 2016)

Tenant Tenant Industry No. of PropertiesRentable

Square Feet

Weighted-Average Remaining Lease Term

(Years)

1st Constitution Bancorp Retail Banking 1 4,500 7.3

Aaron's Specialty Retail 1 7,964 6.9

Academy Sports Specialty Retail 1 71,640 11.8

Advance Auto Auto Retail 4 30,511 7.1

Amazon Consumer Products 1 79,105 6.8

American Express Travel Related Services Financial Services 2 785,164 3.4

American Tire Distributors Auto Retail 1 125,060 7.3

AmeriCold Refrigerated Warehousing 9 1,407,166 11.0

Arby's Restaurant 2 6,494 11.7

AutoZone Auto Retail 3 21,526 8.1

Bi-Lo Supermarket 1 55,718 9.3

BSFS Auto Services 1 8,934 7.3

Burger King Restaurant 41 168,192 17.2

C&S Wholesale Grocer Distribution 5 3,044,685 6.0

Chili's Restaurant 2 12,700 9.2

Circle K Gas/Convenience 19 54,521 12.1

Citizens Bank Retail Banking 9 34,777 7.3

CVS Pharmacy 3 34,840 13.9

Dollar General Discount Retail 38 356,512 11.2

Family Dollar Discount Retail 12 99,882 6.8

FedEx Ground Distribution 8 441,494 8.2

Food Lion Supermarket 1 44,549 13.1

Fresenius Healthcare 3 21,847 10.3

Home Depot Home Maintenance 2 1,315,200 10.3

Joe's Crab Shack Restaurant 2 16,012 10.5

Krystal Restaurant 6 12,730 13.0

L.A. Fitness Fitness 1 45,000 7.4

Lowe's Home Maintenance 5 671,313 12.8

Mattress Firm Specialty Retail 9 43,561 8.2

Merrill Lynch, Pierce, Fenner & Smith Financial Services 3 553,841 8.2

National Tire & Battery Auto Services 2 18,163 13.2

New Breed Logistics Freight 1 390,486 5.1

O'Charley's Restaurant 20 135,973 15.1

O'Reilly Auto Parts Auto Retail 1 10,692 13.8

SAAB Sensis Aerospace 1 90,822 8.5

Sanofi US Healthcare 1 736,572 9.8

Stop & Shop Supermarket 8 544,112 10.1

SunTrust Bank Retail Banking 204 1,080,922 9.8

Talecris Plasma Resources Healthcare 1 22,262 6.5

Tire Kingdom Auto Services 1 6,635 8.5

Tractor Supply Specialty Retail 3 61,694 10.5

United Healthcare Healthcare 1 400,000 4.8

Walgreens Pharmacy 18 253,780 12.1

Total 458 13,327,551 9.4

3Q 2016REPORT


3Q 2016REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

Michael Weil Chief Executive Officer and President • Founding partner of AR Global• Supervised the origination of investment opportunities for all AR Global-sponsored investment

programs• Previously served as Senior VP of Sales and Leasing for American Financial Realty Trust (AFRT)• Served as president of the Board of Directors of the Real Estate Investment Securities Association

(REISA)

Nick Radesca Chief Financial Officer, Secretary and Treasurer• Formerly CFO & Corporate Secretary for Solar Capital Ltd. and Solar Senior Capital Ltd.• Previously served as Chief Accounting Officer at iStar Financial, Inc.

Jason SlearSenior Vice President of Real Estate Acquisitions/Dispositions• Responsible for sourcing, negotiating, and closing AR Global’s real estate acquisitions and dispositions

• Formerly east coast territory director for AFRT where he was responsible for the disposition and leasing activity for a portion of AFRT’s 37.3 million square foot portfolio

Executive Management Team

3Q 2016REPORT


Investor Inquiries

For more information on AFIN, please visit the company website listed below or call our Investor Services department at 866-902-0063.

www.americanfinancetrust.com

The information included herein should be read in connection with your review of AFIN’s Quarterly Report on Form 10-Q as of and for the quarter ended September 30, 2016, as filed with the U.S. Securities and Exchange Commission (“SEC”) on November 10, 2016.

Forward-Looking Statement Disclosure

The statements in this report that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “will,” “should,” “may,” “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. Actual results may differ materially from those contemplated by such forward-looking statements due to certain factors, including those set forth in the Risk Factors section of AFIN’s Annual Report on Form 10-K filed on March 16, 2016 and any subsequent Quarterly Reports on Form 10-Q, which are available at the SEC’s website at www.sec.gov. Further, forward-looking statements speak only as of the date they are made, and AFIN undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.


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