Spirit's Story & Values

A strong, robust balance sheet is vital to success, so our long-term financing strategy is to maintain a leverage profile that allows operational flexibility and generates superior, risk-adjusted returns for our stockholders. We finance our operations and investments using a variety of methods, such as:

• Available unrestricted cash balances
• Property operating revenue
• Proceeds from property dispositions
• Available borrowings under our credit facilities
• Common and preferred stock issuances
• Debt securities issuance, including senior unsecured debt, term loans and property level debt

Spirit’s market-leading technology allows foresight and situational awareness to make timely and well-informed decisions. At Spirit, we take advantage of these integrated tools to streamline key processes for acquisitions, tenant monitoring and managing our capital structure, forecasts and records. Effective use of technology platforms informs portfolio management decisions and provides efficiency, depth and scalability to our processes while also allowing us to seamlessly execute our objectives.

We believe attracting, developing and retaining a team of highly talented and motivated employees is critical to reflecting our “All One Team” motto and delivering strong financial results. To that end, we have also implemented sound social, human capital management and environmental practices and policies throughout the operation of our business.

At Spirit, we demonstrate our solid commitment to being responsible and conscientious in everything that we do. These commitments are transparently set forth in our Environmental Management System, Human Rights Policy, Anti-Corruption Policy, Vendor Code of Conduct and our Code of Business Conduct and Ethics.

We believe that portfolio diversification and lease structures aligned with our business and growth strategies are the cornerstones to managing the inherent risk associated with investing in real estate. We maintain certain lease qualities to ensure rental revenue stability and maximize long-term returns:

• Diverse and granular portfolio
• Leases for operationally essential real estate
• Leases with contractual rental growth
• Leases with relatively long terms
• Leases with a master lease structure

At Spirit, we don’t just look to a single industry or channel for investment opportunities. Instead, we base decisions on our comprehensive assessments and source new deals from our extensive, diverse network of partnerships with tenants and brokers. This multi-channel approach drives acquisition volume and creates a balanced mix of opportunities from numerous sectors.

We target tenants that are publicly listed, because those tenants possess certain attractive characteristics, including continual access to capital, generally lower leverage, audited financial statements and governance scrutiny.

We believe extensive credit underwriting is crucial for minimizing tenant financial risk as well as protecting stockholder value. Our independent credit department underwrites all acquisition, disposition and capital investment opportunities and monitors the financial health of our existing portfolio. These underwriting capabilities help identify tenants with attractive credit characteristics and stable operating histories to build relationships and help identify tenants with weakening characteristics to dispose of.

Each acquisition opportunity is evaluated against our acquisition criteria, which includes, but is not limited to:

• Accretive capitalization rate
• Long-term lease structure containing rent escalations
• Favorable tenant industries based on the Spirit Heat Map
• Favorable Spirit property ranking
• Attractive tenant credit characteristics
• Overall portfolio diversification impact