Dane Bowler
Value, hedge fund analyst, REITs, registered investment advisor

American Realty Capital Properties: David Acquires Goliath

In February of 2013, American Realty Capital Properties (ARCP) had an enterprise value of just over $300mm, but it may soon be valued at $12B. How does a company grow almost 40 fold in just a month? Well, Nicholas Schorsch, Chairman and CEO of ARCP, has discovered the recipe for exponential growth: tapping into the vast untraded REIT market. On February 28th, ARCP purchased an affiliated non-traded REIT, ARCT III, through a mix of equity and cash. I covered this merger extensively in a previous article so we will not go into detail here. This acquisition was generally viewed as accretive and took the company to an enterprise value of around $3B. Schorsch is proving he can play outside the...

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