Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
_____________________
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
report (Date of earliest event reported):
January
27, 2010
American Realty
Capital Trust, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Maryland
(State
or Other Jurisdiction of Incorporation)
333-145949
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71-1036989
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(Commission
File Number)
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(IRS
Employer Identification No.)
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106
Old York Road
Jenkintown,
PA
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19046
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(215) 887-2189 (Registrant’s
Telephone Number, Including Area Code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Item 8.01 Other Events.
Increase
in Annual Cash Distribution
On
January 27, 2010, the Board of Directors of American Realty Capital Trust, Inc.
(the “Company”) 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%.
Payment
of Special Cash Distribution
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, in
addition to the 6.7% annualized distribution rate paid monthly. This
special distribution was scheduled to be paid in January 2010. Such
special distribution was paid on January 19, 2010.
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:
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Annualized
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Distribution
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Number
of
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Period
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Rate
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Months
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May
2008 (a)
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December
2008
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6.5%
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8
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January
2009
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March
2010
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6.7%
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15
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Special
Distribution - January 2010 (b)
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0.5%
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-
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7.2%
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(b)
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April
2010
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-
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7.0%
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-
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(a)
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initial
distribution was paid in May
2008.
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(b)
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payable
to shareholder's 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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Taxation
of 2009 Distributions
The
Company determined distributions paid to shareholders in 2009 will 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 2008.
The
portion of the distribution that is not subject to tax immediately 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.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AMERICAN
REALTY CAPITAL TRUST, INC.
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Date:
January 28, 2010
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By:
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/s/
Nicholas S. Schorsch
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Name:
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Nicholas
S. Schorsch
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Title:
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Chief
Executive Officer and
Chairman
of the Board of Directors
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