Glenn Rufrano hopes asset sales can reinvent former American Realty Capital Properties

The new company Vereit is fighting to repair post-scandal image

TRD MIAMI /
Jan.January 12, 2016 04:30 PM

From the New York website: It’s been a tough go for Glenn Rufrano, who is working to convince investors that the firm formerly known as American Realty Capital Properties has a promising future.

He’s got his work cut out for him: Shares in the company, now called Vereit, have dramatically dropped since the REIT revealed that its chief financial officer had intentionally hid accounting errors by overstating the company’s cash flow. Though Rufrano — the company’s new chief executive — has swiftly moved to rebuild the company, Vereit’s shares dropped 12 percent in 2015 and have already fallen by 3.9 percent this year, the Wall Street Journal reported.

Rufrano’s strategy is one of purging and restocking: He’s sold off $1.4 billion in property to pay off the company’s debt and has refilled top positions. Vereit plans to sell another $600 million worth of Red Lobsters and is expected to shed up to $2.2 billion worth of assets by the end of 2016 to reverse the company’s financial predicament.

Still, several investors have lobbed lawsuits at the company over its accounting scandal, which could cost the firm $300 million, the newspaper reported. It may also take some time before investors are ready to trust the REIT again. [WSJ] — Kathryn Brenzel


Related Articles

arrow_forward_ios
Former American Realty Capital CFO arrested over accounting scandal

Former American Realty Capital CFO arrested over accounting scandal

Former American Realty Capital CFO arrested over accounting scandal
Schorsch’s AR Global planning $10.5B REIT consolidation

Schorsch’s AR Global planning $10.5B REIT consolidation

Schorsch’s AR Global planning $10.5B REIT consolidation
Apollo buys majority stake in American Realty Capital for $378M

Apollo buys majority stake in American Realty Capital for $378M

Apollo buys majority stake in American Realty Capital for $378M
Rufrano wants to sell $2.2B in American Realty Capital assets, reduce debt

Rufrano wants to sell $2.2B in American Realty Capital assets, reduce debt

Rufrano wants to sell $2.2B in American Realty Capital assets, reduce debt
REITs reforming exec compensation practices in wake of shareholder criticism

REITs reforming exec compensation practices in wake of shareholder criticism

REITs reforming exec compensation practices in wake of shareholder criticism
Investors sue American Realty for alleged “hidden scheme”

Investors sue American Realty for alleged “hidden scheme”

Investors sue American Realty for alleged “hidden scheme”
Glenn Rufrano named new CEO of American Realty Capital

Glenn Rufrano named new CEO of American Realty Capital

Glenn Rufrano named new CEO of American Realty Capital
Cache closes flagship N.Y. Garment District office amid bankruptcy

Cache closes flagship N.Y. Garment District office amid bankruptcy

Cache closes flagship N.Y. Garment District office amid bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...