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

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.