Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details