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.

Latest News

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

UBS moves toward full-service US bank as plans to extend wealth business
UBS moves toward full-service US bank as plans to extend wealth business

Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.