ARCenters will initially own 69 multi-tenant shopping centers with estimated 2014 NOI of $139M. Other than ARCP Chairman and CEO Nicholas Schorsch, no directors or employees of the parent will be directors of the new company.
ARCP President David Kay: "We recognized that the market was not giving us full value for our high-quality shopping centers." He expects leverage of ARCP to fall to 7x after the spinoff, the combined dividend to increase 7.3%, and AFFO per share accretion.
ARCP common shareholders will receive 1 share of ARCenters for every 10 shares of ARCP common stock.
CC at 10:30 ET
ARCP +3.3% premarket