3Q 2013REPORT4Q 2016

REPORT

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American Finance Trust, Inc.

American Finance Trust

American Finance Trust

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

Dear Fellow Shareholder,

This letter offers us the opportunity to welcome our newest shareholders, those who joined the American Finance Trust, Inc. (“AFIN”) family earlier this year following our merger with American Realty Capital – Retail Centers of America, Inc. (“ARC – Retail”).

This report provides you with information about the AFIN portfolio and performance. We have continued to deliver on our core investment objectives of acquiring and managing a diversified portfolio of net lease real estate located across the U.S.

AFIN continued to benefit from the stability of its long term leases during the fourth quarter of 2016. We also sold three assets during the period, for total proceeds of $148 million, demonstrating our commitment to optimization of portfolio value through an ongoing focus on proactive asset management.

In February 2017, after receiving shareholder approvals we closed on our merger with ARC – Retail. This transaction enhances the size and scale of AFIN’s portfolio with the addition of 35 institutional quality multi-tenant retail properties, bringing our portfolio to 487 owned assets, representing 20.3 million square feet. The transaction significantly diversifies the portfolio, adding high quality tenants, while expanding AFIN’s national footprint and presence in key markets.

The addition of ARC – Retail’s multi-tenant portfolio offers a value-add component to AFIN’s strategy, with the potential to pursue lease up opportunities in this retail segment. Meanwhile, AFIN continues to benefit from our characteristically long lease terms and consistent high occupancy rates. The portfolio’s weighted average lease term stood at 9.1 years as of December 31, 2016, with 100.0% overall occupancy. Given our well-balanced portfolio of retail, office, and distribution properties, we’re confident that with the addition of ARC – Retail’s portfolio we have now reached a size and scale that will enhance AFIN’s position in the net lease REIT market and better position the company for a future full-cycle liquidity event.

Our results reflect the dedication of AFIN’s management team, and that of the parent of our sponsor, AR Global Investments, LLC (“AR Global”), to maximize shareholder value. In particular, we aim to deliver this through three core investment features - sustainable current distributions, protection and preservation of invested capital and the potential for capital appreciation.

All AR Global sponsored investment programs create value in the same way; through the thoughtful selection, intelligent acquisition, and experienced management of owned real estate, structured in a public, non-traded investment vehicle. We believe that this long-term, practiced approach to real estate ownership serves our investors well, particularly in an environment marked by political uncertainty and market instability.

Looking to the year ahead, we remain committed to acquiring and managing a diversified portfolio of real estate across the U.S., and to maximizing value for you, our shareholders. Together with AR Global, we look forward to continuing to serve you with these goals in mind.

As always, please feel free to contact us at 866-902-0063 to speak with a member of AR Global’s client services group.

Sincerely,

Michael Weil Chief Executive Officer and President

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4Q 2016REPORT

AFIN is designed to protect shareholder capital and provide attractive, stable cash distributions. AFIN currently seeks to achieve these objectives through the acquisition and management of a diversified portfolio of commercial properties which are net leased primarily to investment grade and other creditworthy tenants, as well as a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers.

Distribution InformationDistribution Rate1 (as of December 31, 2016)6.6%

Distribution FrequencyMonthly

Key Facts (as of December 31, 2016)Total Capital Raised2

$1.6 billion

Overview (as of April 2017)

1 Distribution rate of 6.6% represents per annum distributions of $1.65 per share based on initial IPO price per share of $25.00. Distribution rate is 7.1% based on $23.37 per share, AFIN’s estimated per-share net asset value (“Estimated Per-Share NAV”) as of December 31, 2016.

2 Includes proceeds raised through the sale of common stock and shares issued pursuant to the distribution reinvestment plan, net of share repurchases.3 Accounting principles generally accepted in the United States of America.4 Straight-line rental.5 Aggregate contract purchase price of properties acquired, excluding acquisition related costs and mortgage premiums resulting from debt assumed in

connection with property acquisitions.6 Total debt to total assets.7 The properties leased to Merrill Lynch, Pierce, Fenner & Smith were held for sale as of December 31, 2016 and subsequently sold on January 31, 2017 for a

purchase price of $148 million.

Net Lease Portfolio Highlights (as of December 31, 2016)

Property Highlights

Number of Properties 455

Rentable Square Feet 13,319,348

Percentage Leased 100.0%

Weighted-Average Remaining Lease Term (Yrs.)

9.1

Financial Highlights

Property Purchase Price5 $2.2 billion

Corporate Leverage Ratio6 50.0%

Weighted-Average Effective Interest Rate

4.75%

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States with AFIN properties

Top States*(Annualized GAAP3 SLR4 Income %)

New Jersey20.0%

Top 5 Tenants IndustryCredit Rating

Details

Annualized GAAP SLR Income %

SunTrust Bank Retail Banking S&P: BBB+ 17.7%

Sanofi US Healthcare S&P: AA 11.4%

C&S Wholesale Grocer Distribution S&P: BB 10.2%

AmeriCold Refrigerated Warehousing S&P: B+ 7.7%

Merrill Lynch, Pierce, Fenner & Smith7 Financial Services S&P: A+ 7.7%

Total 54.7%

Tenant Quality (as of December 31, 2016)

Other45.3%

17.7%

11.4%

Top 5 Tenants 54.7%

7.7%7.7%

10.2%

Geographic Diversification

Georgia11.0%

Massachusetts8.1%

Florida7.6%

North Carolina6.6%

Alabama5.4%

* As of December 31, 2016, we had tenants in 36 states + DC.

Other41.3%

Factsheet

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American Finance Trust

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Portfolio Details (as of December 31, 2016)

Tenant Tenant Industry No. of PropertiesRentable

Square Feet

Weighted-Average Remaining Lease Term

(Years)

1st Constitution Bancorp Retail Banking 1 4,500 7.1

Aaron's Specialty Retail 1 7,964 6.7

Academy Sports Specialty Retail 1 71,640 11.5

Advance Auto Auto Retail 4 30,511 6.8

Amazon Consumer Products 1 79,105 6.6

American Express Travel Related Services Financial Services 2 785,164 3.1

American Tire Distributors Auto Retail 1 125,060 7.1

AmeriCold Refrigerated Warehousing 9 1,407,166 10.8

Arby's Restaurant 2 6,494 11.4

AutoZone Auto Retail 3 21,526 7.8

Bi-Lo Supermarket 1 55,718 9.0

BSFS Auto Services 1 8,934 7.1

Burger King Restaurant 41 168,192 16.9

C&S Wholesale Grocer Distribution 5 3,044,685 5.8

Chili's Restaurant 2 12,700 8.9

Circle K Gas/Convenience 19 54,521 11.8

Citizens Bank Retail Banking 9 34,777 7.0

CVS Pharmacy 3 34,840 13.6

Dollar General Discount Retail 38 356,512 10.9

Family Dollar Discount Retail 12 99,882 6.5

FedEx Ground Distribution 8 441,494 8.0

Food Lion Supermarket 1 44,549 12.8

Fresenius Healthcare 3 21,847 10.1

Home Depot Home Maintenance 2 1,315,200 10.1

Joe's Crab Shack Restaurant 2 16,012 10.3

Krystal Restaurant 6 12,730 12.7

L.A. Fitness Fitness 1 45,000 7.2

Lowe's Home Maintenance 5 671,313 12.5

Mattress Firm Specialty Retail 9 43,561 8.0

Merrill Lynch, Pierce, Fenner & Smith Financial Services 3 553,841 7.9

National Tire & Battery Auto Services 2 18,163 12.9

New Breed Logistics Freight 1 390,486 4.8

O'Charley's Restaurant 20 135,973 14.8

O'Reilly Auto Parts Auto Retail 1 10,692 13.5

SAAB Sensis Aerospace 1 90,822 8.3

Sanofi US Healthcare 1 736,572 9.5

Stop & Shop Supermarket 8 544,112 9.9

SunTrust Bank Retail Banking 201 1,072,719 9.6

Talecris Plasma Resources Healthcare 1 22,262 6.3

Tire Kingdom Auto Services 1 6,635 8.3

Tractor Supply Specialty Retail 3 61,694 10.3

United Healthcare Healthcare 1 400,000 4.5

Walgreens Pharmacy 18 253,780 11.8

Total 455 13,319,348 9.1

4Q 2016REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL4

4Q 2016REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

Michael Weil Chief Executive Officer and President • Founding partner of AR Global• Supervised the origination of investment opportunities for all AR Global-sponsored investment

programs• Previously served as Senior VP of Sales and Leasing for American Financial Realty Trust (AFRT)• Served as president of the Board of Directors of the Real Estate Investment Securities Association

(REISA)

Nick Radesca Chief Financial Officer, Secretary and Treasurer• Formerly CFO & Corporate Secretary for Solar Capital Ltd. and Solar Senior Capital Ltd.• Previously served as Chief Accounting Officer at iStar Financial, Inc.

Jason SlearSenior Vice President of Real Estate Acquisitions/Dispositions• Responsible for sourcing, negotiating, and closing AR Global’s real estate acquisitions and dispositions

• Formerly east coast territory director for AFRT where he was responsible for the disposition and leasing activity for a portion of AFRT’s 37.3 million square foot portfolio

Kase AbusharkhManaging Director - Multi-Tenant Portfolio• 15 years of experience in commercial real estate finance, acquisition, disposition and development

• Facilitated over $2 billion in commercial real estate transactions

Executive Management Team

4Q 2016REPORT

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American Finance Trust

Investor Inquiries

For more information on AFIN, please visit the company website listed below or call our Investor Services department at 866-902-0063.

www.americanfinancetrust.com

The information included herein should be read in connection with your review of AFIN’s Annual Report on Form 10-K as of and for the year ended December 31, 2016, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2017.

Forward-Looking Statement Disclosure

The statements in this report that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “will,” “should,” “may,” “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. Actual results may differ materially from those contemplated by such forward-looking statements due to certain factors, including those set forth in the Risk Factors section of AFIN’s Annual Report on Form 10-K filed on March 13, 2017 and any subsequent Quarterly Reports on Form 10-Q, which are available at the SEC’s website at www.sec.gov. Further, forward-looking statements speak only as of the date they are made, and AFIN undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

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