American Financial Realty Trust Announces Dispositions, Acquisitions and Leasing Results for Fourth Quarter 2005.

JENKINTOWN, Pa. -- American Financial Realty Trust (NYSE:AFR), a real estate investment trust focused on acquiring and leasing properties occupied by financial institutions, today announced strong sales and leasing results for the quarter ended December 31, 2005. During the quarter, the Company continued to execute its core business strategy of acquiring bank branches and office properties occupied by financial institutions.

"We are pleased with our ability to meet our operational performance goals for the fourth quarter," said Glenn Blumenthal, Chief Operating Officer at American Financial Realty. "We disposed of a high volume of non-core properties, allowing us to recycle capital to execute creative acquisitions of high-yielding, core properties. At the same time, we exceeded our leasing goals this quarter in our branches, as well as our office properties, demonstrating the growing strength and maturity of our brokerage division."

During the fourth quarter, new leasing activity totaled approximately 384,000 square feet of new and expanded leases, highlighted by the quick lease-up and rent commencement of 38 of the 68 high-demand bank branches that were purchased in the middle of the quarter. On a full portfolio basis, American Financial Realty's new leasing activity grew 65 percent over fourth quarter 2004, increasing from 231,000 square feet to approximately 384,000 square feet, with an average rent per square foot of $28.64, creating an annualized additional rent of approximately $11 million. Associated tenant improvement costs, calculated on a weighted average lease term, were $1.08 per square foot per year.

In the fourth quarter, American Financial Realty disposed of 58 non-core properties generating $58 million in proceeds and saving approximately $140,000 monthly in negative net operating income moving forward. The dispositions aggregated approximately 986,000 rentable square feet, including approximately 659,000 square feet of vacant or soon-to-be vacant space. For the year 2005, the Company disposed of a total of 143 non-core properties aggregating approximately 2.5 million rentable square feet, including approximately 1.7 million square feet of vacant or soon-to-be vacant space, which generated $124.6 million in proceeds. The dispositions exceeded the Company's sales goals announced in May 2005.

In line with its core strategy, American Financial Realty accelerated the acquisition of bank branches, purchasing 68 branches and 32 bank branch development parcels from Wachovia Bank, National Association. The properties were part of the Wachovia/SouthTrust portfolio acquired for a net purchase price of approximately $90.1 million under the Company's long standing Formulated Price Contract with Wachovia Bank. In two separate transactions, the Company also acquired two properties from Citizens Financial Group. American Financial Realty acquired the national headquarters of Citizens Financial Group, Inc. located in Providence, Rhode Island for $60.1 million. The building contains approximately 224,000 square feet and is 100 percent occupied. Citizens Bank of Rhode Island is the primary tenant occupying approximately 93,000 square feet on an effective net lease basis until November 2015. American Financial Realty also acquired a 164,000 square foot building in Glen Allen, Virginia for $25.3 million that houses Citizens Bank's mortgage company, which will leaseback 117,000 square feet through March 2014.

For more information about American Financial Realty Trust or to arrange media interviews with American Financial Realty executives, contact Tony DeFazio at 215-887-2280 or [e-mail].

About American Financial Realty Trust

American Financial Realty Trust is a self-administered, self-managed real estate investment trust that acquires properties from, and leases properties to, regulated financial institutions. The Company owns and manages its assets primarily under long-term triple net and bond net leases with banks. The Company is led by chief executive officer Nicholas S. Schorsch and non-executive chairman Lewis S. Ranieri. The Company is traded on the New York Stock Exchange under the ticker symbol AFR.

For more information on American Financial Realty Trust, visit the Company's website at www.afrt.com.

Forward-Looking Statements 

Certain statements in this press release constitute forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "expects," "anticipates," "estimates," "intends," "believes" and similar expressions that do not relate to historical information. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks and uncertainties which are, in some cases, beyond the Company's control and could materially affect actual results, performance or achievements. These risks and uncertainties include the risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, and include, without limitation, changes in general economic conditions and the extent of any tenant bankruptcies and insolvencies; the Company's ability to maintain and increase occupancy; the Company's ability to timely lease or re-lease space at anticipated net effective rents; the cost and availability of debt and equity financing; and the Company's ability to acquire and dispose of certain of its assets from time to time on acceptable terms. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.