ARCP gets time to revise earnings, delays dividend

Big real estate company, until recently led by Nicholas Schorsch, hires Korn Ferry, launches search for new CEO, chairman.
DEC 18, 2014
American Realty Capital Properties Inc. (ARCP) won more time from lenders to revise some inaccurate financial statements and said it won't pay a dividend until the reports are completed. ARCP, which this month saw the departure of Chairman Nicholas Schorsch and two other executives, plans to review its dividend policy and deliver a common stock payment to investors that's “in line with its industry peers,” the New York-based company said Wednesday in a statement. (More: Nicholas Schorsch's REIT empire is under siege) ARCP, the largest U.S. owner of single-tenant buildings such as restaurants and drugstores, is reviewing financial statements going back to last year after finding that accounting errors were deliberately hidden. Shares of ARCP were down 3.4% to $8.05 in mid-morning trading Wednesday in New York. They have lost 35% since the Oct. 29 disclosures. The company plans to evaluate its capital structure and allocation of capital, ARCP said Wednesday. It hired adviser Korn Ferry and started a search for a chief executive officer and a non-executive chairman. CEO David Kay, who took the job in October, departed this month as did chief Operating Officer Lisa Beeson.

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