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Tuesday, 28 July 2015

American Realty Capital Properties Gets Renamed VEREIT Inc.

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American Realty Capital Properties Inc. has changed its name to VEREIT Inc., a play on Veritas, the Latin for truth.

The name change is the latest move by the REIT to reposition itself. The company was sired by AR Capital of New York, the most active sponsor of non-traded REITs. It started life owning only 63 net-leased properties that it took public in 2011, and was used by AR Capital as a vehicle through which other non-traded REITs could undergo their liquidity events.

As such, in 2013, it bought American Realty Capital Trust III Inc., which AR Capital had sponsored, in a $2.2 billion deal, the first in a number of deals it executed. It subsequently bought American Realty Capital Trust IV Inc. in a $2.1 billion deal, CapLease Inc. in a $2.1 billion deal and two years ago, it bought Cole Real Estate Investments Inc. in a deal valued at $11.2 billion. It adopted Cole's Phoenix headquarters.

Then last year, it paid $1.5 billion for a portfolio of Red Lobster restaurants as part of that company's acquisition by Golden Gate Capital from Darden Restaurants Inc.

The party was halted last October when the company announced that it had incorrectly reported key data points in its financial results. Its chief financial and chief accounting officers stepped down and its stock price, then hovering in the $12-$15 range plunged to less than $8/share.

The company's architect, Nicholas Schorsch, subsequently stepped down as chairman, as did its chief executive, David Kay. And Glenn J. Rufrano, a well-known turnaround specialist who previously had led the recapitalization of Centro Properties Trust, was installed as chief executive. And the company's repositioning got underway.

"Changing the name of the company was high on my list of priorities as we work towards establishing a new business foundation and organizational culture," Rufrano said. He said VEREIT was "perfect" because it "succinctly represents a commitment to serve our tenants, business partners, investors and employees through discipline, transparency and consistency."

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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