Spirit Realty Capital : Guidance and Capital Deployment Update

Spirit Guidance and Capital Deployment Update

JANUARY 10, 2022

2022 GUIDANCE UPDATE

We originally provided 2022 AFFO per share guidance at our 2019 Investor Day. Our tenants,

2022 AFFO per share of $3.52 to $3.58 and capital deployment of

$1.3 billion to $1.5 billion

portfolio and acquisitions platform performed throughout the COVID-19 pandemic, enabling us to raise the midpoint of our projected 2022 AFFO per share guidance range by 3.8%

Key Highlights:

Invested $2.1 billion in real estate assets over the past two years

Minimal tenant defaults due to the pandemic representing 1% of ABR

Maintained occupancy above 99% throughout the pandemic

Reduced Lost Rent and Unreimbursed Property Costs to 0.1% and 1.4%1, respectively, below Investor Day assumptions

2019 Investor Day Outlook2

December 5, 2019

6.1% CAGR

4.0% CAGR

$3.52

$3.32

$2.95

2019 Adjusted	2022 AFFO	2022 AFFO
AFFO Per Share	Per Share (Low)	Per Share (High)

Capital Deployment3

$700M - $900M

Implied Quarterly Capital Deployment

$175M - $225M

Implied Quarterly AFFO Per Share

$0.83 - $0.88 per share

2022 Guidance

6.7% CAGR

6.1% CAGR

	$3.52	$3.58
$2.95
2019 Adjusted	2022 AFFO	2022 AFFO
AFFO Per Share²	Per Share (Low)	Per Share (High)

Capital Deployment

$1,300M - $1,500M

Implied Quarterly Capital Deployment

$325M - $375M

Implied Quarterly AFFO Per Share

$0.88 - $0.90 per share

1As of Q3 2021.
2As presented on slide 136 of Spirit's 2019 Investor Day presentation.	2
32020 outlook as presented on slide 135 of Spirit's 2019 Investor Day presentation.

STRONG GROWTH AT A REASONABLE PRICE

Spirit's Projections vs Net Lease Peers' Estimates

2022 AFFO Per Share Growth

14.2%
10.1%	1
9.4%	9.2%
		8.0%
		6.6%	6.0%
			3.8%
			1.4%

AFFO CAGR from 2019 to 2022

9.3%
7.6%
6.4%2
5.7%	5.5%
	3.3%
	2.6%
	0.9%
	N/A3

			2022 Total Return					2022 AFFO Per Share Multiple
17.7%						Dividend Yield
3.5%	14.7%	14.2%	13.7%			2022 AFFO Per Share Growth	19.1x	18.5x	18.3x	17.6x	17.4x
		4.1%		11.8%	10.9%	10.5%							15.7x	15.7x	15.4x
	5.3%	4.5%	3.8%	9.0%								13.4x
				4.3%
					4.5%		5.8%
14.2%
						5.2%
	9.4%1	10.1%
	9.2%	8.0%	6.6%			4.4%
				6.0%
					3.8%
							1.4%
													WPC		SRC
			Dividend Payout Ratio4
69.9%	71.9%	76.0%	71.6%	72.4%	76.5%	81.0%	82.2%	68.7%

Note: Dividend yield and AFFO per share multiples based on data as of January 5, 2022. 2021 and 2022 AFFO per share is based on Factset consensus estimates for peers and midpoint
of guidance for Spirit. Our peers may not calculate AFFO as we do, and, accordingly, our AFFO may not be directly comparable to such peers' AFFO.
1Year-over-year growth based on midpoint of preliminary 2021 AFFO per share range of $3.24 to $3.25, excluding $0.06 of out of period earnings.
22019 to 2022 CAGR for Spirit based on 2019 adjusted AFFO per share as presented on slide 136 of Spirit's 2019 Investor Day presentation.	3
3Initial public offering completed in third quarter of 2020.
4Calculated using the most recent dividend announcement annualized over 2022 Factset consensus estimates for peers and midpoint of guidance for Spirit.

CAPITAL DEPLOYMENT PERFORMANCE

Spirit has acquired approximately 27% of its total Real Estate Investments1 since 2020

		Retail
		Industrial
		Activity
		Other
				Investment
		Office
		Revenue			Gross
		Producing CapEx
			-$50,000

	Trailing 8-Quarter Totals
Gross Investment	$2,135.4M			Industrial	46.5%
				Retail	38.6%
Quarterly Avg. Gross Investment	$266.9M
		Other	10.8%
Wtd. Avg. Investment Cash Yield	6.88%
		Office	2.4%
Wtd. Avg. Economic Yield on Acquisitions	7.73%
		Revenue Producing CapEx	1.7%

			$436.3M						$487.9M
								4.9%
			0.3%
					$283.7M	$294.2M	38.5%
		$215.3M	56.3%		0.8%
$213.4M			$191.5M	15.0%
3.5%		0.5%
3.8%		41.4%					78.6%
			50.3%	66.7%			56.6%
71.8%			43.4%
	$13.0M	58.1%
20.9%		49.7%	18.3%		6.3%
100.0%				14.3%
Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021		Q3 2021	Q4 2021

Acquisitions ($ in 000s)
Number of Transactions	8	1	8	15	9	11	10	28
Number of Properties	27	2	18	99	25	18	31	92
Gross Investment	$205,863	$13,016	$214,313	$434,959	$191,508	$283,676	$291,788	$463,871
Purchase Price Per Property	$7,380	$6,500	$11,851	$4,377	$7,622	$15,670	$9,373	$5,017
Initial Cash Yield	6.69%	7.52%	7.06%	6.70%	7.57%	7.07%	7.27%	6.27%
Economic Yield	7.41%	8.35%	7.69%	7.45%	8.44%	7.84%	8.62%	7.22%
Weighted Avg. Lease Term (Years)	14.7	15.1	14.8	15.2	17.7	13.0	18.4	15.2
Average Annual Escalators	1.9%	1.5%	1.2%	1.5%	1.5%	1.8%	1.9%	1.8%
Revenue Producing CapEx ($ in 000s)
Gross Investment	$7,579	-	$1,018	$1,373	-	-	$2,412	$24,019
Initial Cash Yield	7.27%	-	7.25%	7.66%	-	-	7.31%	8.52%
Total Gross Investment	$213,442	$13,016	$215,331	$436,332	$191,508	$283,676	$294,200	$487,890
Total Investment Cash Yield	6.71%	7.52%	7.06%	6.70%	7.57%	7.07%	7.27%	6.38%

1Real Estate Investment as of December 31, 2021, excluding fourth quarter impairments.	4

2021 ACQUISITION INDUSTRY BREAKDOWN

Q1 2021

Q2 2021

Dollar Stores: 3.3%

Entertainment: 0.8%

Department Stores: 4.9%

Professional Office: 15.0%

Sporting Goods: 5.8%

Manufacturing: 21.3%

Car Washes: 1.1%

Office

Automotive Service:

Home Improvement: 2.4%

15.0%

7.2%

Industrial

Dollar Stores: 2.5%

Retail

Retail

Manufacturing: 43.5%

Home Décor: 5.8%

Warehouse Club

49.7%

50.3%

18.3%

and Supercenters:

Industrial

10.0%

Dealerships: 6.5%

Health and Fitness: 17.7%

Distribution: 6.8%

66.7%

Distribution: 45.4%

Q3 2021

Q4 2021

Manufacturing: 6.4%

Sporting Goods: 2.4%

Other: 1.4%

Home Furnishings: 2.7%

Car Washes: 5.1%

Dollar Stores: 2.9%

Manufacturing: 30.0%

Industrial

Automotive Service: 3.0%

Early Education: 5.5%

Health and Fitness: 3.0%

6.4%

Retail

Early Education: 2.3%

Dollar Stores: 1.0%

14.4%

Car Washes: 21.2%

Retail

Industrial

59.5%

40.5%

Other

79.2%

Country Clubs: 79.2%

Distribution: 9.0%

Flex: 1.5%

Automotive Service: 23.4%

Note: Percentages based on Gross Investment of acquisitions. Retail industries reflect the underlying Tenant operations, and Industrial, Office and Other industries represent the underlying	5
property use.