- RTL recently changed its company name from "American Finance Trust" to "The Necessity Retail REIT."
- In my view, it amounts to an effort to introduce new and more enticing branding to distract investors from the same horribly misaligned interests between management and shareholders.
- The external management team at AR Global have tied their management fees to equity issuance, regardless of whether that equity issuance produces AFFO/share growth.
- In 2021, after years of declining AFFO per share, RTL did enjoy double-digit AFFO/share growth, but I believe this to be a one-time event.
- I cannot see how the $1.3 billion acquisition of a shopping center portfolio could be accretive to AFFO/share given RTL's cost of capital.
For further details see:
'The Necessity Retail REIT': Misaligned Interests Between Management And Shareholders Didn't Change With Company Name