Spirit Realty Capital, Inc (NYSE:SRC) had a tough Thursday that saw its shares plummet during regular trading hours.
The company reported that there is a “confluence of issues” on a number of its credit watch list tenants as many of these experienced a high credit loss during their first quarter of fiscal 2017.
Spirit Realty Capital is having issues with its retail segment, which includes Shopko as its largest tenant. Shopko unveiled that it will be shedding what it hopes to rake in for 2017 as the company has failed to post any acquisition activity in recent months, with no sign of anything changing soon.
The company’s first-quarter AFFO is now of $98 million, or 20 cents per share. The figure is lower than the 22 cents per share it posted a year ago, while also coming in below estimates by two cents per share.
Meanwhile, full-year AFFO for the company is now in the range of 80 cents to 84 cents per range, which is considerably lower than the 85 cents to 91 cents per share outlook previously stated.
Additionally, the $250 million acquisition target has been pulled.
The move has resulted in a number of downgrades on Spirit Realty Capital, with at least six being announced throughout the morning of Thursday, May 4.
SRC stock fell 23.9% on Thursday.