As filed with the Securities and Exchange Commission on May 2, 2011

Registration No. 333-145949

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



 

PRE-EFFECTIVE AMENDMENT NO. 2 TO
POST-EFFECTIVE AMENDMENT NO. 12 TO
FORM S-11
  
FOR REGISTRATION
UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF CERTAIN REAL ESTATE COMPANIES



 

AMERICAN REALTY CAPITAL TRUST, INC.

(Exact Name of Registrant as Specified in Its Governing Instruments)

106 York Road
Jenkintown, Pennsylvania 19046
(215) 887-2189

(Address, Including Zip Code and Telephone Number,
Including Area Code, of Registrant’s Principal Executive Offices)



 

Nicholas S. Schorsch
AMERICAN REALTY CAPITAL TRUST, INC.
106 York Road
Jenkintown, Pennsylvania 19046
(215) 887-2189

(Name and Address, Including Zip Code and Telephone Number,
Including Area Code, of Agent for Service)



 

With a Copy to:

Peter M. Fass, Esq.
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
(212) 969-3000



 

Approximate Date of Commencement of Proposed Sale to Public: As soon as practicable after the registration statement becomes effective.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box: x

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

If delivery of the prospectus is expected to be made pursuant to Rule 434, check, the following box: o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

 
Large accelerated filer o   Accelerated filer o
Non-accelerated filer x (Do not check if a smaller reporting company)   Smaller reporting company o

This Post-Effective Amendment No. 12 consists of the following:

Supplement No. 5, dated May 2, 2011.
Registrant’s final form of Prospectus dated December 13, 2010.
Part II, included herewith.
Signatures, included herewith.
 

 


 
 

TABLE OF CONTENTS

AMERICAN REALTY CAPITAL TRUST, INC.
  
SUPPLEMENT NO. 4 DATED MAY 2, 2011
TO THE PROSPECTUS DATED DECEMBER 13, 2011

This prospectus supplement (this “Supplement No. 5”) is part of the prospectus of American Realty Capital Trust, Inc. (“we,” “us,” “our,” the “REIT” or the “Company”), dated December 13, 2010 (the “Prospectus”), and should be read in conjunction with the Prospectus. This Supplement No. 5 supplements, modifies or supersedes certain information contained in our Prospectus. This Supplement No. 5 consolidates, supersedes and replaces all prior Supplements and must be read in conjunction with our Prospectus. Unless otherwise indicated, the information contained herein is current as of the filing date of the prospectus supplement in which the Company initially disclosed such information. This Supplement No. 5 will be delivered with the Prospectus.

The purpose of this Supplement No. 5 is to disclose, among other things, the following:

operating information, including the status of the offering, shares currently available for sale, portfolio data including recent real estate investments and potential property investments, selected financial data, status of distributions, share repurchase program information and status of fees paid and deferred to our advisor, dealer manager and their affiliates;
updates to our criteria for investor suitability;
information regarding management and management compensation;
our investment in a joint venture with one of our affiliates;
recently completed acquisitions of real estate investments; and
updates regarding our prior performance.


 
 

TABLE OF CONTENTS

TABLE OF CONTENTS

   
  Supplement No. 5
Page No.
  Prospectus
Page No.
OPERATING INFORMATION
                 
Status of the Offering     S-1       N/A  
Shares Currently Available for Sale     S-1       N/A  
Real Property Investments     S-1       105  
Real Estate Portfolio     S-1       110  
Yield on Real Estate Investments     S-4       110  
Significant Tenants and Lease Expirations     S-7       108  
Selected Financial Data     S-0       N/A  
Status of Distributions     S-8       11/176  
Share Repurchase Program     S-12       14/183  
Status of Fees Paid and Deferred     S-12       11  
Information Regarding Dilution     S-13       N/A  
PROSPECTUS UPDATES
                 
Suitability Standards     S-14       i  
Questions and Answers about this Offering     S-15       viii  
Prospectus Summary     S-16       1  
Risk Factors     S-23       17  
Estimated Use of Proceeds     S-23       47  
Management     S-25       49  
Management Compensation     S-34       69  
Conflicts of Interest     S-43       79  
Investment Objectives and Policies     S-47       85-136  
Plan of Operation     S-71       139  
Selected Financial Data     S-73       140  
Prior Performance Summary     S-74       142  
Description of Shares     S-83       172  
Plan of Distribution     S-84       193  
Incorporation of Certain Information by Reference     S-85       200  
Appendix A-1 Subscription Agreement     A-1       Appendix A-1  
Appendix A-2 Multi Offering Subscription Agreement     A-2-1       Appendix A-2-1  
Appendix C-2 Prior Performance Tables     C-1       Appendix C-2-1  

i


 
 

TABLE OF CONTENTS

OPERATING INFORMATION

Status of Offering

We commenced our initial public offering of 150,000,000 shares of common stock on January 25, 2008. As of March 31, 2011, we had issued 87.9 million shares of common stock. Total gross proceeds from these issuances were $859.1 million. As of March 31, 2011, the aggregate value of all share issuances and subscriptions outstanding was $870.7 million based on a per share value of $10.00 (or $9.50 per share for shares issued under the DRIP).

On August 5, 2010, we filed a registration statement on Form S-11 with the U.S. Securities Exchange Commission, or the SEC, to register $325,000,000 of common stock for the follow on offering to our primary offering. Our primary offering was originally set to expire on January 25, 2011. However, as permitted by Rule 415 of the Securities Act of 1933, as amended, or the Securities Act, we will now continue our primary public offering until the earlier of July 25, 2011, or the date that the SEC declares the registration statement for the follow on offering effective.

Shares Currently Available for Sale

As of March 31, 2011, there were 63.1 million shares of our common stock available for sale, excluding shares available under the DRIP.

Real Property Investments

Real Estate Portfolio

As of March 31, 2011, we owned interests in 318 real estate properties acquired from third parties unaffiliated with us or our advisor. All properties are net leased commercial properties that are 100% leased to investment grade or other credit worthy tenants. The following is a summary of our real estate properties as of March 31, 2011 (dollars in thousands):

               
Property   Acquisition
Date
  No. of
Buildings
  Square
Feet
  Ownership
Percentage
  Remaining
Lease
Term(1)
  Base
Purchase
Price(2)
  Capitalization
Rate(3)
  Annualized Rental Income(4)
FedEx     Mar. 2008       1       55,440       51 %      7.7     $ 9,694       7.53 %    $ 730  
First Niagara     Mar. 2008       15       177,774       100 %      11.8       40,976       7.48 %      3,064  
Rockland Trust     May 2008       18       121,057       100 %      10.3       32,188       7.86 %      2,530  
PNC Bank(5)     Sep. &
Oct. 2008
      2       8,403       59 %      17.9       6,664       8.21 %      547  
Rite Aid     Sep. 2008       6       74,919       100 %      12.3       18,576       7.79 %      1,447  
PNC     Nov. 2008       48       264,196       100 %      7.7       40,925       7.36 %      3,013  
FedEx II     Jul. 2009       1       152,640       100 %      12.6       31,692       8.84 %      2,803  
Walgreens     Jul. 2009       1       14,820       56 %      21.3       3,818       8.12 %      310  
CVS(6)(7)     Sep. 2009
Sep. 2010
      10       131,105       86 %      22.9       44,371       8.37 %      3,713  
CVS II     Nov. 2009       15       198,729       100 %      23.3       59,788       8.48 %      5,071  
Home Depot     Dec. 2009       1       465,600       100 %      18.8       23,532       9.31 %      2,192  
BSFS     Dec. 2009
&
Jan. 2010
      6       57,336       100 %      13.2       15,041       9.24 %      1,390  
Advance Auto     Dec. 2009       1       7,000       100 %      10.7       1,730       9.25 %      160  
Fresenius     Jan. 2010       2       140,000       100 %      11.3       12,183       9.30 %      1,159  
Reckitt Benckiser     Feb. 2010       1       574,106       85 %      10.9       31,100       8.41 %      2,668  
Jack in the Box     Feb. 2010
&
Apr. 2010
      5       12,253       100 %      18.9       9,755       7.80 %      781  

S-1


 
 

TABLE OF CONTENTS

               
Property   Acquisition Date   No. of Buildings   Square Feet   Ownership Percentage   Remaining Lease Term(1)   Base Purchase Price(2)   Capitalization Rate(3)   Annualized Rental Income(4)
BSFS II(8)     Feb. &
Mar. 2010
      12       93,599       74 %      12.8       25,902       8.70 %      2,299  
FedEx III     Apr. 2010       1       118,796       85 %      10.2       33,500       9.03 %      3,087  
Jared Jewelry     May 2010       3       19,534       90 %      17.9       5,342       12.44 %      679  
Walgreens II     May 2010       1       14,820       100 %      22.0       5,593       7.97 %      453  
IHOP     May 2010       1       5,172       100 %      15.0       2,398       8.22 %      201  
Advance Auto II     Jun. 2010       3       19,253       100 %      12.3       3,583       8.38 %      308  
Super Stop &
Shop
    Jun. 2010       1       59,032       100 %      11.9       23,350       8.18 %      1,946  
IHOP II     Jun. 2010       1       4,139       100 %      11.0       2,255       8.87 %      204  
IHOP III     Jun. 2010       1       5,111       100 %      20.4       3,254       9.13 %      303  
Jared Jewelry II     Jun. 2010       1       6,157       100 %      15.9       1,589       12.78 %      209  
Jack in the Box II     Jun. 2010       6       14,975       100 %      19.3       11,150       7.83 %      892  
Walgreens III     Jun. 2010       1       13,386       100 %      23.1       4,968       7.61 %      385  
Dollar General     Jul. 2010       1       8,988       100 %      13.7       1,200       9.61 %      118  
Tractor Supply     Jul. &
Aug. 2010
      4       76,038       100 %      14.2       10,892       8.98 %      978  
Advance Auto III     Jul. 2010       3       19,752       100 %      12.4       4,287       8.35 %      358  
CSAA/CVS     Aug. 2010       1       15,214       100 %      21.9       4,859       7.24 %      352  
CSAA/First Fifth Bank(9)     Aug. 2010       2       8,252       100 %      17.0       6,199       8.39 %      520  
CSAA/Walgreens     Aug. 2010       5       84,263       100 %      21.8       26,864       7.30 %      1,961  
CSAA/Chase Bank(9)     Aug. 2010       2       8,030       100 %      26.1       6,496       9.30 %      604  
CSAA/Home Depot(9)     Sep. 2010       1       107,965       100 %      16.9       8,720       7.12 %      621  
IHOP IV     Sep. 2010       19       87,009       100 %      13.6       30,000       9.44 %      2,833  
O’Reilly Auto     Sep. 2010       1       9,500       100 %      8.9       2,450       8.73 %      214  
Walgreens IV     Sep. 2010       1       14,477       100 %      24.0       6,439       7.75 %      499  
Walgreens V     Sep. 2010       1       13,580       100 %      22.9       4,767       7.95 %      379  
Kum & Go     Sep. 2010       14       67,310       100 %      14.1       22,515       9.21 %      2,074  
FedEx IV     Sep. 2010       1       43,762       100 %      9.3       3,576       8.28 %      296  
AutoZone     Sep. 2010       4       28,880       100 %      15.4       10,228       8.40 %      859  
Brownshoe     Oct. 2010       1       351,723       91 %      18.1       23,849       9.89 %      2,358  
Payless     Oct. 2010       1       801,651       91 %      13.4       44,924       9.37 %      4,211  
Saint Joseph’s Mercy Medical     Oct. 2010       3       46,706       100 %      12.9       9,838       7.79 %      766  
Advance Auto IV     Nov. 2010       1       6,124       100 %      14.5       1,270       8.35 %      106  
Kum and Go II     Nov. 2010       2       8,008       100 %      19.7       2,895       9.50 %      275  
Tractor Supply II     Nov. 2010       3       57,368       100 %      14.9       7,491       9.09 %      681  
FedEx V     Nov. 2010       1       29,410       100 %      9.4       2,800       8.29 %      232  
Walgreens VI     Dec. 2010       7       102,930       100 %      23.2       40,071       7.00 %      2,805  
FedEx VI     Dec. 2010       1       142,160       100 %      12.7       28,600       7.92 %      2,264  
Dollar General II     Dec. 2010       1       9,100       100 %      14.3       1,281       8.98 %      115  

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TABLE OF CONTENTS

               
Property   Acquisition Date   No. of Buildings   Square Feet   Ownership Percentage   Remaining Lease Term(1)   Base Purchase Price(2)   Capitalization Rate(3)   Annualized Rental Income(4)
FedEx VII     Dec. 2010       1       101,350       100 %      13.4       18,800       7.41 %      1,393  
FedEx VIII     Dec. 2010       4       116,689       100 %      7.4       10,891       8.20 %      893  
BB&T     Dec. 2010       1       3,635       100 %      8.8       3,781       7.88 %      298  
Walgreens VII     Dec. 2010       1       14,490       100 %      12.1       2,950       8.85 %      261  
FedEx IX     Dec. 2010       1       64,556       100 %      9.2       6,012       8.28 %      498  
Dollar General III     Dec. 2010       3       27,128       100 %      14.6       2,867       8.72 %      250  
Tractor Supply III     Dec. 2010       1       18,860       100 %      14.0       4,825       8.87 %      428  
DaVita Dialysis     Dec. 2010       1       12,990       100 %      8.3       2,848       8.15 %      232  
Dollar General IV     Dec. 2010       1       9,167       100 %      14.3       1,236       8.98 %      111  
Lowe’s(9)     Jan. 2011       1       141,393       100 %      15.3       10,018       6.74 %      675  
Citizens     Jan. 2011       2       14,307       100 %      7.8       3,811       9.11 %      347  
QuickTrip     Jan. 2011       1       4,555       100 %      12.9       3,330       8.74 %      291  
Dillons     Jan. 2011       1       56,451       100 %      8.6       5,075       7.80 %      396  
Wawa     Jan. 2011       2       12,433       100 %      16.1       17,209       7.00 %      1,205  
Walgreen’s/Tim Hortons     Jan. 2011       9       122,963       100 %      23.8       54,569       6.90 %      3,742  
DaVita Dialysis II     Feb. 2011       4       23,154       100 %      11.2       8,013       8.90 %      713  
CVS III     Feb. 2011       1       13,338       100 %      25.9       5,199       7.25 %      377  
Citigroup     Feb. 2011       1       64,036       100 %      14.5       27,275       7.00 %      1,910  
Coats & Clark     Feb. 2011       1       401,512       100 %      9.8       9,523       9.84 %      937  
Walgreens VIII     Feb. 2011       1       13,569       100 %      22.6       5,460       7.34 %      401  
Express Scripts     Mar. 2011       2       416,141       100 %      8.2       51,281       9.02 %      4,623  
DaVita Dialysis III     Mar. 2011       1       18,185       100 %      12.2       6,565       7.72 %      507  
Dollar General V     Mar. 2011       6       55,363       100 %      14.8       5,195       8.84 %      459  
Wal-Mart     Mar. 2011       1       183,442       100 %      8.1       12,633       7.15 %      903  
Kohl’s     Mar. 2011       1       88,408       100 %      14.9       10,182       7.15 %      728  
Texas Instrument     Mar. 2011       1       125,000       100 %      9.7       32,000       7.88 %      2,522  
Sam’s Club(9)     Mar. 2011       1       141,583       100 %      14.4       12,602       6.75 %      851  
CVS IV     Mar. 2011       1       13,225       100 %      23.9       5,330       7.95 %      424  
Walgreens X     Mar. 2011       2       27,760       100 %      19.3       9,000       7.46 %      671  
CVS V     Mar. 2011       1       12,900       100 %      22.9       5,759       7.29 %      420  
Provident Bank     Mar. 2011       1       2,950       100 %      22.9       2,589       9.15 %      237  
Dillions II     Mar. 2011       1       63,858       100 %      10.5       6,420       7.49 %      481  
FedEx X     Mar. 2011       1       105,109       100 %      7.6       9,050       8.29 %      750  
3M     Mar. 2011       1       650,760       100 %      10.1       44,800       7.35 %      3,295  
Bojangles     Mar. 2011       13       47,865       100 %      12.1       24,789       8.85 %      2,193  
Sub-total              318       8,166,677                14.8       1,259,315       8.21 %      103,445  
Investment in joint venture     Dec. 2010                   7 %            12,000              
             318       8,166,677             14.8     $ 1,271,315       8.21 %    $ 103,445  
Average annualized rental income per square foot               $ 12.66                                

(1) Remaining lease term as of March 31, 2010, in years. If the portfolio has multiple locations with varying lease expirations, remaining lease term is calculated on a weighted-average basis.
(2) Contract purchase price excluding acquisition related costs.

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(3) Annualized rental income divided by base purchase price.
(4) Annualized rental income for the property portfolio on a straight-line basis which includes the effect of tenant concessions such as free rental periods, as applicable.
(5) Ownership percentage is 51% of one property and 65% of one property.
(6) Ownership percentage of three properties is 51% and 100% of the remaining seven properties.
(7) Ownership percentage of six properties is 51% and 100% of the remaining six properties.
(8) Includes the September 2010 purchase of a parcel of land with a ground lease which contains a previously purchased CVS pharmacy.
(9) Property is a parcel of land with a ground lease which contains a building that will be conveyed to the Company at the end of the ground lease. Square footage and number of buildings refers to the building that is constructed on the parcel of land owned by the Company.

We believe that our real estate properties are suitable for their intended purpose and adequately covered by insurance. We do not intend to make significant renovations or improvements to our properties

Yield On Real Estate Investments

In the following table, the amount of the Year 1 yield based upon the contract purchase price of the acquired properties as compared to the Year 1 total rent is approximately 7.67%, which excludes contractual rent increases occurring in future years. The amounts in the following table are as of March 31, 2011. (dollars in thousands):

             
  Purchase Price(1)   Current Mortgage Debt   Effective Interest Rate(2)   Portfolio- Level Leverage   Rent   Contractual Base
Rent Increase (3)
  Year 1   Year 2
FedEx   $ 9,694     $ 6,965       6.29 %       68.2 %     $ 703     $ 703       3.78% and 3.65%
in years 6 and 11,
respectively
 
First Niagara     40,976       30,809 (6)      6.59 %       73.9 %       3,064       3,064        
Rockland     32,188       23,047       4.92 %       69.6 %       2,306       2,340       1.5% annually  
PNC Bank     6,664       4,318       4.58 %       63.0 %       466       466       10% after 5 years  
Rite Aid     18,576       12,808       6.97 %       68.0 %       1,404       1,404        
PNC     40,925       31,329       5.25 %       72.1 %       2,960       2,960       10% after 5 years  
FedEx II     31,692       16,040       6.03 %       50.6 %       2,580       2,580       1% increase in years
5 and 9
 
Walgreens     3,818       1,550 (7)      6.64 %       40.6 %       310       310        
CVS     44,371       23,395 (8)      6.88 %       52.7 %       3,387       3,387       5% increase every 5 years  
CVS II     59,788       32,638       6.64 %       54.6 %       4,984       4,984       5% increase every 5 years  
Home Depot     23,532       12,150       6.03 %       51.6 %       1,806       1,839       2% increase annually  
BSFS     15,041       3,784       6.61 %       25.1 %       1,048       1,048       6.25% every 5 years  
Advanced Auto     1,730                         160       160        
Fresenius     12,183       6,021       6.63 %       49.4 %       1,023       1,023       Approximately 10%
in years 2 and 7
 
Reckitt Benckiser     31,100       14,836       6.23 %       47.7 %       2,279       2,434       2.0% annually  
Jack in the Box     9,755       5,311       6.41 %       54.4 %       639       639        
BSFS II     25,902                         2,150       2,150       6.25% every 5 years  
FedEx III     33,500       15,000       5.57 %       44.8 %       2,761       2,880       Increases every 30 months
based on CPI,
min 5% / max 10
% 
Jared Jewelry     5,342                         580       580       10% increase every 5 years  
Walgreens II     5,593       3,000       5.58 %       53.6 %       453       453        
IHOP     2,398                         192       192       5% increase every 5 years  
Advance Auto II     3,583                         308       308        
Super Stop & Shop     23,350       10,800       5.32 %       46.3 %       1,784       1,784       Increases approx.

7.5% every 5 years
 

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  Purchase Price(1)   Current Mortgage Debt   Effective Interest Rate(2)   Portfolio- Level Leverage   Rent   Contractual Base
Rent Increase (3)
  Year 1   Year 2
IHOP II     2,255                         180       180       10% increase
every 5 years
 
Jared Jewelry II     1,589                         174       182       10% increase every 5 years  
Jack in the box II     11,150                         892       892       Increase every five years
based on CPI with
max 10
% 
Walgreens III     4,968                         385       385        
Dollar General     1,200                         118       118       10% increase every 5 years  
Tractor Supply     10,892                         885       885       10% increase every 5 years  
Advance Auto III     4,287                         358       358        
CSAA/CVS     4,859                         352       352        
CSAA/First Fifth Bank     6,199                         440       440       10% increase every 5 years  
CSAA/Walgreens     26,864                         1,948       1,948        
CSAA/Chase Bank     6,496                         464       473       2.0% annually  
CSAA/Home Depot     8,720       3,900       4.56 %      44.7 %      621       621        
IHOP IV     30,000       12,450       5.32 %      41.5 %      2,448       2,516       10% increase every 5 years  
O’Reilly Auto     2,450                         208       208       Increases 5% in year 11  
Walgreens IV     6,439                         499       499        
Walgreens V     4,767                         379       379        
Kum & Go     22,515                         1,890       1,890       Increases 8% every 5 years  
FedEx IV     3,576                         289       289       Increases 5% in year 6  
AutoZone     10,228                         859       859        
Brown Shoe     23,849                         2,003       2,003       10% increase every 5 years  
Payless     44,924                         3,774       3,774       10% increase every 5 years  
Saint Joseph’s Mercy Medical     9,838                         728       728       1.5% per year after first 5 years  
Advance Auto IV     1,270                         106       106        
Kum and Go II     2,895                         246       246       7.5% increase every 5 years  
Tractor Supply II     7,491                         617       617       10% increase every 5 years  
Federal Express V     2,800                         226       226        
Walgreens VI     40,071       22,900       5.86 %      57.2 %      2,805       2,805        
Federal Express VI     28,600                         2,119       2,119       1.5% increase every year  
Dollar General II     1,281                         115       115        
Federal Express VII     18,800                         1,393       1,393        
Federal Express VIII     10,891                         893       893        
BB&T     3,781                         265       273       3.0% increase every year  
Walgreens VII     2,950                         261       261        
Federal Express IX     6,012                         486       486       5.0% increase in year 6  
Dollar General III     2,867                         248       248       3.0% increase in year 11  
Tractor Supply III     4,825                         387       387       10% increase every 5 years  
DaVita Dialysis     2,848                         232       232        
Dollar General IV     1,236                         111       111        
Lowe’s     10,018                         675       675        
Citizens Bank     3,811       3,011       6.39 %      79.0 %      344       329       2.5% increase every year,
after 7% decrease in
August 2011
 
QuickTrip     3,330                         291       291        
Dillons     5,075                         396       396        
Wawa     17,209                         1,205       1,205        

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  Purchase Price(1)   Current Mortgage Debt   Effective Interest Rate(2)   Portfolio- Level Leverage   Rent   Contractual Base
Rent Increase (3)
  Year 1   Year 2
Walgreens TH     54,569                         3,737       3,737        
Davita Dialysis II     8,013                         444       453       2.0% increase every year  
CVS III     5,199                         377       377        
Citigroup     27,275       13,800       5.66 %      56.6 %      1,836       1,836        
Coats & Clark     9,523                         763       892        
Walgreen VIII     5,460                         401       401        
Express Scripts     51,281       28,710       4.66 %      56.0 %      4,378       4,434       (17)  
DaVita Dialysis III     6,565                         507       507       Increases coincide with CPI
 
Dollar General V     5,195                         455       455       3% increase in year 10  
Wal-Mart     12,633                         903       903        
Kohl’s     10,182                         728       728        
Texas Instruments     32,000                         2,328       2,375       2% increase every year  
Sam’s Club     12,602                         851       851        
CVS IV     5,330                         384       384       7.5% increase in years 10,
15 and 20
 
Walgreens X     9,000                         671       671        
CVS V     5,759                         420       420        
Provident Bank     2,589                         189       189       10% increase every 5 years  
Dillions II     6,420                         481       481        
FedEx X     9,050                         750       750        
3M     44,800       20,500       4.09 %      45.8 %      3,150       3,181       1% increase every year  
Bojangles     24,789                         1,998       2,030       1.5% – 1.8% increases
every year
 
Multi-tenant mortgage I(9)           6,550       5.58 %      50.3 %                   
Multi-tenant mortgage II(10)           19,600       4.36 %      44.1 %                   
Multi-tenant mortgage III(11)           24,700       4.51 %      64.4 %                   
Multi-tenant mortgage IV(12)           28,200       4.92 %      41.0 %                   
Multi-tenant mortgage V(13)           24,300       4.52 %      51.3 %                   
Multi-tenant mortgage VI(14)           51,600       4.93 %      62.3 %                   
Multi-tenant mortgage VII(15)           9,420       5.98 %      95.6 %                   
Multi-tenant mortgage VIII(16)           19,220       4.32 %      47.6 %                   
Total Portfolio(4)   $ 1,259,315     $ 542,662       5.44 %      43.0 %    $ 96,652     $ 97,397        
Investment Grade Tenants (based on
Rent – S&P BBB- or better)
      
  
  
75.5
%                                     
Average Remaining Lease Term (years)(5)       
  
14.8
                                     

(1) Contract purchase price, excluding acquisition and transaction-related costs. Acquisition and transaction- related costs include legal costs, acquisition fees paid to the Advisor and closing costs on the property.
(2) Interest rate includes the effect of in-place hedges, as applicable.

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(3) Increase does not take into account lease escalations that commence in future years or adjustments based on the Consumer Price Index.
(4) Weighted average as of March 31, 2011.
(5) As of March 31, 2011 — Primary lease term only (excluding renewal option periods).
(6) The effective interest rate resets at the end of year five to the then current 5-year Treasury rate plus 2.25%, but in no event will be less than 6.5%.
(7) In August 2014 The rate adjusts to the greater of 6.55% or the rate of 5 year U.S. Treasury obligations plus 3.50%
(8) The interest rate can be adjusted at the option of the lender at the end of the fifth year.
(9) Loan is collateralized by 1 Walgreens and 6 Advance Auto properties
(10) Loan is collateralized by 1 CVS, 2 Fifth Third Banks, 5 Walgreens, and 2 Chase Bank properties
(11) Loan is collateralized by 4 Tractor Supplies, 1 O’Reilly Automotive, 2 Walgreens, 1 FedEx, 4 AutoZones, and 3 Saint Joseph’s Mercy Medical properties.
(12) Loan is collateralized by a Brownshoe and a Payless property.
(13) Loan is collateralized by 2 FedEx properties
(14) Loan is collateralized by 6 BSFS, 2 IHOPs, 4 Jack in the Box, 3 Dollar Generals, 1 CVS land parcel, 1 Advance Auto, 2 Tractor Supplies, 6 FedEx, 1 BB&T, 1 Walgreens, 1 DaVita Dialysis, 1 Lowe’s property
(15) Loan is collateralized by 2 Walgreens properties
(16) Loan is collateralized by 4 Walgreens properties
(17) 2% increase in 2013, 4% increase in 2016 for one property and 2% increase every year for one property

Significant Tenants and Lease Expirations

The following table sets forth information regarding the tenant occupying ten percent or more of the aggregate rentable square footage of our real estate investment portfolio, as of March 31, 2011:

                 
                 
Tenant Name   Nature of Business   Number of Properties Occupied by Tenant   Square
Feet
  Square Feet as a % of Total Portfolio   Lease
Expiration
  Average Remaining Lease Terms(1)   Renewal Options   Annual Rent(2)   Annual Rent per Square Foot
FedEx     Freight       13       929,912       11.4 %      Jun. 2018 –
Jul. 2024
      11.0       2 renewal options
of 5 years
    $ 12,946     $ 14.07  

(1) Remaining lease term in years as of March 31, 2011. If the portfolio has multiple locations with varying lease expirations, remaining lease term is calculated on a weighted-average basis.
(2) Annual rent in thousands.

The following table lists tenants whose rental income represented greater than 10% of consolidated income at March 31, 2011.

 
Tenant Name   % of Consolidated Net Income at March 31, 2011
FedEx     12.3 % 
Walgreens     13.0 % 

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The following is a summary of lease expirations for the next ten years as of March 31, 2011 (dollars in thousands):

         
Year of Expiration   Number of
Leases
Expiring
  Annualized
Base Rent
  Percent of
Portfolio
Annualized
Base
Rent Expiring
  Leased
Rentable
Sq. Ft.
  Percent of
Portfolio
Rentable
Sq. Ft. Expiring
2011                              
2012                              
2013                              
2014     2     $ 160       0.2 %      9,841       0.1 % 
2015                              
2016     3       482       0.5 %      27,675       0.3 % 
2017     1       179       0.2 %      12,613       0.2 % 
2018     64       9,515       9.2 %      780,215       9.6 % 
2019     6       2,128       2.1 %      270,133       3.3 % 
2020     10       6,670       6.4 %      920,096       11.3 % 
2021     8       7,855       7.6 %      859,603       10.5 % 
Total     94     $ 26,989       26.2 %      2,880,176       35.3 % 

No material tenant credit issues have been identified at this time. As of March 31, 2011, we had no tenants with rent balances outstanding over 90 days.

Status of Distributions

On February 25, 2008, our Board of Directors declared a distribution for each monthly period commencing 30 days subsequent to acquiring our initial portfolio of real estate investments. Accordingly, our daily distributions commenced accruing on April 5, 2008. The REIT’s initial distribution payment was paid to shareholders on May 21, 2008 representing distributions accrued from April 5, 2008 through April 30, 2008. Subsequently, we modified the payment date to the 2nd day following each month-end to stockholders of record at the close of business each day during the applicable period. The distribution was calculated based on stockholders of record each day during the applicable period at a rate of $0.00178082191 per day, and equaled a daily amount that, if paid each day for a 365-day period, equaled a 6.5% annualized rate based on the share price of $10.00.

On November 5, 2008, the Board of Directors of American Realty Capital Trust, Inc. (the “Company”) approved an increase in its annual cash distribution from $.65 to $.67, paid monthly. Based on a $10.00 share price, this 20-basis point increase, effective January 2, 2009, will result in an annualized distribution rate of 6.7%. For the period from January 1, 2008 through October 20, 2009 distributions paid totaled $2,414,456,inclusive of $933,631 of common shares issued under the distribution reinvestment plan. We have continued to pay distributions to our shareholders each month since our initial distributions payment.

On October 5, 2009, the Board of Directors of the Company approved a special distribution of $0.05 per share payable to shareholders of record on December 31, 2009. This special distribution will be paid in January 2010, and shall be paid in addition to the current annualized distribution of $0.67 per share. In the event we do not have enough cash to make distributions in the future, we may borrow, use proceeds from this offering, issue additional securities or sell assets in order to fund distributions.

On January 27, 2010, the Board of Directors approved an increase in its annual cash distribution from $.67 to $.70, paid monthly. Based on a $10.00 share price, this 30 basis point increase, effective April 1, 2010, will result in an annualized distribution rate of 7.0%.

To date, the Company’s distributions have been paid with a combination of cash flows from operations and the proceeds from the sales of common stock. There can be no assurance that cash flows from operations will be sufficient to pay distributions in future periods.

The following table shows the sources for the payment of distributions for the year ended December 31, 2010.

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  Year Ended December 31, 2010
     1st Quarter   2nd Quarter   3rd Quarter   4th Quarter
Distributions paid in cash   $ 1,821     $ 2,119     $ 3,096     $ 4,375  
Distributions reinvested   $ 1,407     $ 1,726     $ 2,584     $ 3,601  
Total distributions   $ 3,228     $ 3,845     $ 5,680     $ 7,976  
Source of distributions:
                                   
Cash flows provided by (used in) operations (GAAP basis)   $ 1,821     $ 2,119     $ 3,096     $ 4,375  
Proceeds from issuance of common stock   $ 1,407     $ 1,726     $ 2,584     $ 3,601  
Total sources   $ 3,228     $ 3,845     $ 5,680     $ 7,976  

The following table compares cumulative distributions declared and paid to net loss (in accordance with GAAP) for the period from August 17, 2007 (date of inception) through December 31, 2010 (in thousands):

 
  For the Period from August 17, 2007 (date of inception) to December 31, 2010
Distributions paid:
                 
Cash   $ 13,595  
DRIP     10,755  
Total distributions paid   $ 24,350  
Reconciliation of net loss:
        
Rental income   $ 65,283  
Acquisition and transaction related     (12,977 ) 
Depreciation and amortization     (33,025 ) 
Other operating expense     (3,830 ) 
Other income (expense)     (33,702 ) 
Net income (loss) attributable to non-controlling interests     (132 ) 
Net loss (in accordance with GAAP) (a)   $ (18,383 ) 

(a) Net loss as defined by GAAP includes the non-cash impact of depreciation and amortization expense as well as costs incurred relating to acquisitions and related transactions subsequent to January 1, 2009.

The following table summarizes the Company’s historical and prospective distribution rate, reflecting the special distribution and increase to the annual rate effective April 1, 2010 noted above:

   
Period   Annualized
Distribution
Rate
  Number of
Months
May 2008(1) to December 2008     6.5 %      8  
January 2009 to March 2010     6.7 %      15  
Special Distribution – January 2010(2)     0.5 %       
       7.2 %(2)          
April 2010 to – March 31, 2010     7.0 %      12  

(1) initial distribution was paid in May 2008.
(2) payable to shareholders of record as of December 31, 2009, resulting in a minimum distribution rate of 7.2% for an investor who owned a common share of the Company for the full year ended December 31, 2009.

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The Company determined distributions paid to shareholders in 2010 to be reported as nondividend distributions on Form 1099 for the applicable period. Accordingly, such distributions are generally not subject to ordinary income tax in the related period. This tax characterization is consistent with distributions paid to shareholders in 2009. The tax characterization of the Company’s distributions is determined on an annual basis.

The portion of the distribution that is not subject to tax in a respective tax year is considered a return of capital for tax purposes and will reduce the tax basis of a shareholder’s investment. This defers a portion of applicable taxes until the investment is sold or the Company is liquidated, at which time the shareholder will be taxed at capital gains rates. However, because each investor’s tax considerations are different, the Company recommends that investors consult with their tax advisor.

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The following is a chart of monthly distributions declared and paid since the commencement of the offering:

     
  Total   Cash   Distribution
Reinvestment
Plan
2008:
                          
April   $     $     $  
May     30,262       22,008       8,254  
June     49,638       35,283       14,355  
July     55,042       34,788       20,254  
August     57,584       36,519       21,065  
September     61,395       39,361       22,034  
October     61,425       41,078       20,347  
November     65,496       43,646       21,850  
December     64,442       42,876       21,566  
     $ 445,284     $ 295,559     $ 149,725  
2009:
                          
January   $ 69,263       46,227     $ 23,036  
February     76,027       50,214       25,813  
March     74,915       49,020       25,895  
April     101,282       64,375       36,907  
May     128,867       78,604       50,263  
June     180,039       106,741       73,298  
July     217,325       127,399       89,926  
August     290,230       177,620       112,610  
September     375,926       220,165       155,761  
October     455,051       264,729       190,322  
November     563,472       328,555       234,917  
December     643,125       374,715       268,410  
     $ 3,175,522     $ 1,888,364     $ 1,287,158  
2010:
                          
January(1)   $ 1,498,413     $ 855,282     $ 643,131  
February     866,051       485,025       381,026  
March     863,896       480,674       383,222  
April     1,085,719       600,607       485,112  
May     1,262,558       695,838       566,720  
June     1,496,076       821,779       674,296  
July     1,637,264       894,427       742,837  
August     1,895,554       1,028,264       867,290  
September     2,148,405       1,174,295       974,110  
October     2,331,205       1,277,288       1,053,916  
November     2,691,086       1,474,293       1,216,792  
December     2,953,206       1,623,096       1,330,110  
     $ 20,729,432     $ 11,410,869     $ 9,318,563  
2011:
                          
January   $ 3,431,046     $ 1,900,661     $ 1,530,385  
February     3,828,246       2,139,346       1,688,900  
March     3,869,945       2,184,887       1,685,058  
     $ 11,129,237     $ 6,224,894     $ 4,904,343  
Distributions   $ 35,479,475     $ 19,819,686     $ 15,659,789  

(1) Includes the special distribution paid on January 19, 2010 to shareholders of record as of December 31, 2009.

The Company, Board of Directors and Advisor share a similar philosophy with respect to paying the dividend. The dividend should principally be derived from cash flows generated from real estate operations. Specifically, funds from operations should equal or exceed distributions in a given period. If needed, the

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Advisor generally expects to waive its asset management fee and forego entitled reimbursements to ensure the full coverage of the Company’s distributions. The fees and reimbursement that are waived are not deferrals and accordingly, will not be paid by the Company.

Share Repurchase Program

As of December 31, 2010, we received requests cumulatively to date to redeem 302,528 common shares pursuant to our Share Redemption Plan. We approved the redemption of 100% of the redemption requests as of December 31, 2010, at an average price per share of $9.788. We funded share redemptions from the cumulative proceeds of the sale of our common shares pursuant to our Dividend Reinvestment Plan.

The Company will honor repurchase requests in connection with the death or disability of a stockholder so long as the Company remains a non-traded REIT. The Company will limit the purchases that it may make pursuant to the Share Redemption Plan in any calendar year to 5.0% of the weighted average number of shares outstanding during the prior year, ratably by calendar quarter. Any changes to these policies will require a majority vote of the Company’s stockholders.

Status of Fees Paid and Deferred

The following table sets forth the fees and expenses paid through December 31, 2010 (amounts in thousands).

     
  Total Fees
Paid
  Total Fees
Deferred
  Total Fees
Forgiven
per Year
January 1, 2008 to December 31, 2008
                          
Organizational and Offering Expenses   $ 2,289     $     $ 200  
Acquisition Fees   $ 1,507     $     $  
Finance Coordination Fees   $ 1,131     $     $  
Property Management Fees   $     $     $ 100  
Asset Management Fees   $     $     $ 733  
January 1, 2009 to December 31, 2009
                          
Organizational and Offering Expenses   $ 7,202     $     $ 3,800  
Acquisition Fees   $ 1,690     $     $  
Finance Coordination Fees   $ 880     $     $  
Property Management Fees   $     $     $ 300  
Asset Management Fees   $ 145     $     $ 1,779  
January 1, 2010 to December 31, 2010
                          
Organizational and Offering Expenses   $ 10,665     $     $  
Acquisition Fees   $ 5,462     $     $  
Finance Coordination Fees   $ 2,679     $     $  
Property Management Fees   $     $     $ 833  
Asset Management Fees   $ 1,350     $     $ 4,010  

Amounts paid to the advisor include approximately of $10,728 million offering costs incurred by the affiliated advisor and dealer manager that exceeds 1.5% of gross offering proceeds earned cumulatively through September 30, 2010. Any organizational or offering expenses that exceed 1.5% of gross offering proceeds over the term of the offering will be the advisor’s obligation.

We pay the advisor an annualized asset management fee of up to 1.0% based on the aggregate contract purchase price of all properties. For as long as the Company remains a non-traded REIT, the aggregate value of the asset management fees paid by the Company over the life of the offering plus the value of all restricted shares issued by the Company pursuant to its employee and director incentive restricted share plan cannot exceed 1% of the contract purchase price of all the properties based on assets held by the Company on the measurement date, adjusted for appropriate closing dates for individual property acquisitions. For purposes of this calculation, the value of the restricted stock granted to the advisor and its employees will be the value of the Company’s common stock, par value $0.01 per share, on the date of such grant. As of December 31, 2010, we paid $4.4 million to the Advisor who will determine if such fees will be partially waived in subsequent periods on a quarter-to-quarter basis.

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Information Regarding Dilution

In connection with this ongoing offering of shares of our common stock, we are providing information about our net tangible book value per share. Our net tangible book value per share is a mechanical calculation using amounts from our audited balance sheet, and is calculated as (1) total book value of our assets less the net value of intangible assets (2) minus total liabilities less the net value of intangible liabilities, (3) divided by the total number of shares of common stock outstanding. It assumes that the value of real estate, and real estate related assets and liabilities diminish predictably over time as shown through the depreciation and amortization of real estate investments. Real estate values have historically risen or fallen with market conditions. Net tangible book value is used generally as a conservative measure of net worth that we do not believe reflects our estimated value per share. It is not intended to reflect the value of our assets upon an orderly liquidation of the company in accordance with our investment objectives. Our net tangible book value reflects dilution in the value of our common stock from the issue price as a result of (i) operating losses, which reflect accumulated depreciation and amortization of real estate investments, (ii) the funding of distributions from sources other than our cash flow from operations, and (iii) fees paid in connection with our public offering, including commissions, dealer manager fees and other offering costs. As of December 31, 2010, our net tangible book value per share was $6.62. The offering price of shares under our primary offering (ignoring purchase price discounts for certain categories of purchasers) at December 31, 2010 was $10.00.

Our offering price was not established on an independent basis and bears no relationship to the net value of our assets. Further, even without depreciation in the value of our assets, the other factors described above with respect to the dilution in the value of our common stock are likely to cause our offering price to be higher than the amount you would receive per share if we were to liquidate at this time.

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PROSPECTUS UPDATES
  
Suitability Standards

The following disclosure is to be added as the second paragraph of the section of the Prospectus entitled “Suitability Standards” on page (i).

FINRA Rule 2310(b)(3)(D) requires that we disclose the liquidity of prior public programs sponsored by American Realty Capital, our sponsor. American Realty Capital has sponsored the following other public programs: American Realty Capital Trust II, Inc., American Realty Capital Trust III, Inc., American Realty Capital New York Recovery REIT, Inc., American Realty Capital Healthcare Trust, Inc., American Realty Capital — Retail Centers of America, Inc., Phillips Edison — ARC Shopping Center REIT, Inc., ARC-Northcliffe Income Properties, Inc., American Realty Capital Properties, Inc. and Business Development Corporation of America. Although the prospectus for each of these public programs states a date or time period by which it may be liquidated, each of American Realty Capital Trust II, Inc., ARC-Northcliffe Properties, Inc. and American Realty Capital Properties, Inc. are currently in registration with the SEC and American Realty Capital New York Recovery REIT, Inc., Phillips-Edison ARC Shopping Center, Inc., American Realty Capital Healthcare Trust, Inc. American Realty Capital Trust III, Inc., American Realty Capital-Retail Centers of America, Inc. and Business Development Corporation of America are in their offering and acquisition stages. None of these public programs have reached the stated date or time period by which they may be liquidated.

The fourth bullet point under of the section of the Prospectus entitled “Suitability Standards” on page (ii) is revised to remove the requirement that Mississippi residents represent they have a net worth of at least 10 times the amount of their investment in the offering and other similar programs, as follows:

Alabama — In addition to the suitability standards above, shares will only be sold to Alabama residents that represent that they have a liquid net worth of at least 10 times the amount of their investment in this real estate investment program and other similar programs.

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Questions and Answers about this Offering

The following language replaces the first question and response under the heading “Questions and Answers about this Offering” beginning on page (viii) of the Prospectus.

Q: Who is American Realty Capital Trust, Inc.?
A: We are the first REIT sponsored by American Realty Capital. We are a Maryland corporation organized on August 17, 2007 which qualified as a REIT beginning with the taxable year ended December 31, 2008. Since such time, American Realty Capital has sponsored eight other publicly offered REITS which include American Realty Capital New York Recovery REIT, Inc., or Recovery REIT, a Maryland corporation organized on October 6, 2009, Phillips Edison — ARC Shopping Center REIT, Inc., or PEARC, a Maryland corporation organized on October 13, 2009, American Realty Capital — Retail Centers of America, Inc., or ARC RCA, a Maryland corporation organized on July 29, 2010, American Realty Capital Healthcare Trust