Primary Objectives and Investment Strategy ¹

American Realty Capital Trust III’s primary investment objectives are to preserve, protect and return invested capital, pay monthly distributions to shareholders and provide long-term capital appreciation. In an effort to meet these objectives, ARCT III intends to employ the following investment strategy:

• Buy freestanding, single-tenant properties (e.g. drug stores, strategic distribution facilities and bank branches)
• Execute primarily triple-net leases with lease terms of 10 to 25 years
• Diversify by geography, tenant, lease term and market segment
• Purchase properties leased to corporate tenants that are primarily investment grade
• Conduct rigorous tenant analysis
• Target leverage of 50 percent ²
• Expect to pursue a liquidity strategy exit within three to five years following the close of the offering ³
  

1 There is no guarantee that these investment objectives or strategy will be met.
2 Charter permits up to 75% leverage
3 If our board does not decide to pursue a liquidity event or if we fail to receive stockholder approval for a liquidity event, the REIT could operate indefinitely.