Necessity Retail REIT : Q1 2023 Investor Presentation 2.2 MB

The Necessity Retail REIT

First Quarter 2023 Investor Presentation

May 2023

First Quarter 2023 Overview

Portfolio Information:(1)

Real Estate Investments, at cost	$5.0 billion
# of Properties	1,039
States (including District of Columbia)	48
Portfolio Occupancy(1)	92.6%
Portfolio Executed Plus Leasing Pipeline Occupancy(1)	94.5%(4)

Robust Leasing

Platform

	Year-over-year, total portfolio
	Occupancy increased to
Necessity-Based	92.6%(1) in Q1'23 from 91.4%	Best-in-Class
in Q1'22 and is expected to
Retail Focus	further increase	Portfolio
53.7% of portfolio SLR is	to 94.5%(4)	63.6% of top 20 tenants are
derived from Necessity-Based
	actual or implied Investment
retail tenants, which RTL
	Grade Rated(1) and 54.1%
believes are more resilient to
e-commerce and economic		are Necessity-Based
cycles than Traditional
Retail(1)

Q1'23 Annualized Straight-line Rent ("SLR")(2)	$374.8 million
Weighted Average Remaining Lease Term(2)	7.1 Years
Top 20 Tenant Investment Grade %(2)(3)	63.6%

Proactive

Disposition Program

In Q1'23, RTL completed

$72.4 million of dispositions and has a forward disposition pipeline of $111.5 million, by contract sales price

Diligent Balance

Sheet

Liquidityof $89.7

million(5), weighted average

interest rate of 4.4%, weighted average debt maturity of 3.8 years

Note: Metrics shown as of and for the period ending March 31, 2023.

1. See appendix for a full description of capitalized terms and a reconciliation of non-GAAP metrics. Portfolio Occupancy as of December 31, 2022 was 93.7%.
2. Based on Annualized Straight-line Rent as of March 31, 2023.
3. Based on Annualized Straight-line Rent and on ratings information as of March 31, 2023. For our purposes, includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade ratings, which includes ratings of the tenant's parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or lease guarantor. See appendix for a full description of Investment Grade. RTL's top 20 tenants were 55.7% actual and 7.9% implied Investment Grade rated.
4. Leasing Pipeline data as of May 1, 2023. Assumes executed leases commence and signed LOIs lead to definitive leases on their contemplated terms, which is not assured.
5. As of May 1, 2023, Liquidity was $71.3 million.

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First Quarter 2023 Performance Highlights

RTL increased total portfolio Occupancy to 92.6%(1) in Q1'23 from 91.4% in Q1'22 which, including Executed Occupancy and Leasing Pipeline, is expected to

further increase to 94.5%(1) and add $7.5 million of SLR(2). Additionally, RTL reduced net debt by $29 million from Q4'22 to Q1'23 and remains focused on incremental lease-up and its previously announced disposition strategy as part of its efforts to reduce leverage.

Significant Leasing Activity(1)

Year-over-year, total portfolio Occupancy improved to 92.6%(1) from 91.4% as RTL completed 70 multi-tenant new and renewal leases and 23 single tenant renewals and amendments in Q1'23 that collectively total nearly 1.1 million square feet and $17.8 million of Annualized Straight-line Rent.

Total portfolio Executed Occupancy and Leasing Pipeline is expected to increase Occupancy to 94.5%(1) and add $7.5million of SLR(2).

Q1'23 multi-tenant lease renewal spread of 12.7% demonstrates strong renewal demand and market for RTL's suburban multi-tenant assets.

Pandemic-Tested and Resilient Portfolio

In 2022, RTL acquired $1.3 billion of pandemic-tested and Necessity-Basedretail-focused assets and created the preeminent REIT focused on

Necessity-Based retail.

As of Q1'23, RTL's top 20 tenant base was 63.6% Investment Grade rated and featured everyday brands that represent Where America Shops.

As of Q1'23, 57% of portfolio SLR was derived from sunbelt markets, with the balance derived from dense suburban markets with strong MSA's and community centric lifestyles.

Diligently Constructed Capital Structure

Balanced debt maturity schedule through 2027 that is 83.7% composed of attractive fixed-rate debt.

Quarter over quarter, RTL reduced Net Debt by $29 million as RTL remains focused on incremental lease-up and its previously announced disposition strategy as part of its efforts to reduce leverage.

RTL's completed and pipeline disposition activity(3) totaled $183.9 million in Q1'23, by contract sales price, and was composed of $72.4 million of completed dispositions and a forward disposition pipeline of $111.5 million, the net proceeds of which we expect to use to proactively reduce leverage.

For the periods ended March 31, 2023 and 2022 unless otherwise indicated.
1.	Portfolio Occupancy as of December 31, 2022 was 93.7%. Refer to slide 8 for additional information.
2.	Leasing Pipeline data as of May 1, 2023. Assumes executed leases commence and signed LOIs lead to definitive leases on their contemplated terms, which is not assured.
3.	Includes pipeline as of May 8, 2023. PSAs are subject to conditions and LOIs are non-binding. There can be no assurance the pipeline dispositions will be completed on their current terms, or at all.
The Necessity Retail REIT® Where America Shops | www.necessityretailreit.com	2

First Quarter 2023 Portfolio Summary

RTL's preeminent Necessity-Based retail portfolio features a unique investment mix of open-air shopping centers with market-rate rental growth opportunities and stable, long-termsingle-tenantnet-leased assets, which RTL believes are collectively highly complementary and resistant to economic cycles.

Portfolio Metrics ($ and SF in mm)

Multi-Tenant

Single-Tenant

Total Portfolio

Total Portfolio Annualized SLR by Segment

Real Estate Investments, at cost	$2,714	$2,294	$5,008
Number of Properties	109	930	1,039
States (including District of Columbia)	29	48	48
Square Feet	16.4	11.2	27.6
Annualized Straight-Line Rent	$199.4	$175.4	$374.8
Occupancy (%)	89.1%	97.7%	92.6%
Executed Occupancy Plus Leasing Pipeline(1) (%)	92.2%	97.9%	94.5%
Investment Grade Tenancy(2) (%)	58.5%	36.4%	48.9%(3)
Weighted Average Remaining Lease Term	4.9 Years	9.7 Years	7.1 Years

Power Center

Anchored Center

Grocery Center

Single-Tenant

47%

Single-Tenant

2%

17%

$175

million

81%

Retail

Distribution

Office

Multi-Tenant

53%

31%

$375

million

11%

11%

Multi-Tenant

21%

$199 million 58%

21%

Power Center

Anchored Center

Grocery Center

Note: Metrics shown as of and for the period ending March 31, 2023.

1. As of May 1, 2023. Includes all leases fully executed by both parties where the tenant has yet to take possession, all leases fully executed by both parties, and all leases under negotiation with an executed LOI by both parties. Assumes executed leases commence and signed LOIs lead to definitive leases on their contemplated terms, which is not assured. See appendix for a full description of Executed Occupancy and Leasing Pipeline for additional information.
2. Based on Annualized Straight-line Rent and on ratings information as of March 31, 2023. Includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade ratings, which includes ratings of the tenant's parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or lease guarantor. See appendix for a full description of Investment Grade. As of March 31, 2023, RTL's single-tenant portfolio tenants were 43.3% actual and 15.2% implied investment grade rated. RTL's multi-tenant portfolio includes credit ratings for tenants who occupy 10,000 square feet or more. RTL's multi-tenant portfolio tenants were 29.7% actual and 6.7% implied investment grade rated. On a total portfolio basis, RTL's tenants were 37.4% actual and 11.5% implied Investment Grade rated.
3. Includes anchor tenants, tenants that occupy 10,000 square feet or more, only from the multi-tenant portfolio.

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Top 10 Tenants Represent Where America Shops

RTL's top 10 tenants represent only 29.5% of portfolio SLR and feature creditworthy everyday brands that are representative of Where America Shops.

Tenant	Credit	Market Cap(2)	Tenant Industry	Remaining Lease	% SLR
				Term (in years)
Fresenius	Actual: Baa3	$12 Billion	Healthcare	5.8	3.9%
Mountain	Not Rated	N/A	Gas & Convenience	15.4	3.5%
Express Oil Co.(1)
Home Depot	Actual: A2	$300 Billion	Home Improvement	6.5	3.5%
AmeriCold	Actual: Baa3	$8 Billion	Refrigerated	4.5	3.4%
Warehousing
Truist Bank	Actual: A2	$45 Billion	Retail Banking	6.3	3.3%
PetSmart	Actual: B1	N/A	Pet Supplies	3.5	2.8%
Imperial Reliance	Implied: Ba2	N/A	Gas & Convenience	16.1	2.6%
Dick's Sporting	Actual: Baa3	$12 Billion	Sporting Goods	3.0	2.2%
Goods
Bob Evans	Implied: Baa2	N/A	Fast Casual Restaurants	14.1	2.2%
Dollar General	Actual: Baa2	$46 Billion	Discount Retail	6.4	2.1%
Top 10 Tenants	69.8% IG Rated(3)	$423 Billion		8.1	29.5%
Remaining Portfolio				6.8	70.5%

Note: Metrics shown for the Q1'23 RTL portfolio as of and for the period ending March 31, 2023.

1. Mountain Express Oil Company filed for Chapter 11 bankruptcy protection in March 2023. Bankruptcy proceedings are ongoing and we have not yet been notified of any lease rejections, although there is a pending motion to reject 28 of these leases. Accordingly, we have not accounted for any lease terminations at this time. Mountain Express Oil Company leased 71 of our single-tenant properties as of March 31, 2023.
2. Market capitalization as of March 31, 2023. Source: Bloomberg.
3. Based on Annualized Straight-Line Rent. Ratings information as of March 31, 2023. 62.3% of the rated tenants were actual Investment Grade rated and 7.5% of the rated tenants were implied Investment Grade rated, which includes ratings of the tenant's parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or lease guarantor. See appendix for a full description of Investment Grade.

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