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
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.

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