Monday, March 02, 2015

The Wait Is Finally Over

American Realty Capital Properties, Inc. (ARCP) filed its restated financial statements this morning, which stem from the October 29, 2014, disclosure of accounting errors .  The restatement includes the first two quarters of 2014, and full years 2013, 2012, and 2011.  According to this Bloomberg article, which quotes a JP Morgan analyst, it does not appear that any bigger issues emerged from the restatements.  The specter of some undisclosed issue at ARCP was the concern of most people who follow the non-traded REIT industry.  The restatement did result in ARCP reporting an increased loss and lower adjusted funds from operations for 2013. 

4 comments:

Anonymous said...

You make no mention of the 8mm payment to the advisor or the equity grants. I do not hate ARCP but I expect you to have more coverage on a story of this magnitude. You have written more on CNL and Inland since your return. You are losing credibility. Any chance you work at First Allied or another company acquired by RCAP?

Rational Realist said...

I don't work for ARCP, RCAP, First Allied or any other company. I'm looking into the $8 mill, but there was a lot of material released yesterday. I'll admit though, I am fatigued by this story, and the lack of any huge revelations yesterday didn't re-energize me. Two issues are more interesting to me than the $8 million: the SEC investigation - which was mentioned but not elaborated - and the activist shareholders.

Anonymous said...

Everyone is fatigued by this story. Few expected huge revelations but multiple years of restatements is not nothing. I have followed your analysis for years. What I find interesting is that you were hard on this group when they were changing the industry and making solid acquisitions. You went soft when they started buying everything in sight regardless of price. We appreciate your work.

Anonymous said...

massive drama and then.....what?