VEREIT, formerly American Realty Capital Properties, plans to cut holdings by $2.2 billion

REIT looking to lower exposure to noncontrolled ventures, noncare assets, restaurants and certain buildings by the end of 2016.
JUN 02, 2015
By  Bloomberg
VEREIT Inc., the real estate company formerly known as American Realty Capital Properties Inc., intends to reduce its holdings by as much as $2.2 billion by the end of next year. The real estate investment trust is seeking to cut its exposure to noncontrolled ventures, noncore assets, restaurants and buildings where leases have no short-term rent increases, according to a statement Thursday. Toward the total goal, about $960 million of sales have been completed this year or are under contract, the Phoenix-based company said. The REIT has worked to rebuild its reputation after an accounting scandal last year that resulted in the departures of key executives, including chairman Nicholas Schorsch and chief executive David Kay. New board members were appointed and in March, Glenn Rufrano was hired as CEO. The company last week began trading under its new name, derived from the Latin word veritas, meaning “truth.” “We have the opportunity for a fresh start,” Mr. Rufrano said in the statement. “With the introduction of our business plan, we now have a strategy in place and are rapidly executing.” VEREIT currently owns more than 4,600 properties, most of which are leased to single tenants. The company grew rapidly through an acquisition spree, including the purchase of more than 500 Red Lobster restaurant locations last year.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound