Seeking Alpha

ARCP sets spinoff of $2.2B multi-tenant shopping center unit

  • The new company, American Realty Capital Centers, will operate under the name ARCenters and trade on the Nasdaq with symbol ARCM. ARCP will retain a 25% interest in ARCM.
  • 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
  • Press release
  • ARCP +3.3% premarket
Comments (15)
  • aguyinthemidwest
    , contributor
    Comments (98) | Send Message
     
    early Bid is $15, so I guess its a good move.
    13 Mar, 07:37 AM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    Looks like I'll be owning another REIT: ARCM
    13 Mar, 07:55 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (646) | Send Message
     
    The opportunities to multiply this Company into separated Enterprises is one of the most attractive potentials to Investors given it's size and growth. This is Management for Shareholders on a scale of return not seen since the 1990's.
    Interesting what's occurred Post Merger.
    13 Mar, 11:05 AM Reply Like
  • User 6418851
    , contributor
    Comments (76) | Send Message
     
    2014, the year of consolidation... until it's time to multiply companies into separate enterprises.
    13 Mar, 02:55 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (646) | Send Message
     
    Yes, perhaps quality Mid Caps targeted by larger enterprises to immediately increase growth - certainly not the largest splitting off sector divisions in order to unlock inherent valuation for it's share holders. understanding the difference and why this occurs is paramount to acquiring the potential winners. or, just sideline your portfolio w slow growth 4.8 percent yields and collect your distributions without all the added excitement. A couple of dozen companies with historically adequate payments come to mind but investors seem to mind very much when their share price is cut 30 percent victimized by rates versus yield, but heck, yields always go up when the price comes down. so what's to worry about ?
    Yes, 2014, the year of consolidation - for increased earnings. Can't think of anything better than a large capital gain beats my dividend or a 2 for 1 and a higher yield.
    It's 11 o Clock .. do you know where your REIT is ?
    20 Mar, 12:37 AM Reply Like
  • Patience29
    , contributor
    Comments (147) | Send Message
     
    Looks like I will also be adding ARCM to my portfolio. I actually like the separation of the retail shopping unit, so the spinoff is fine with me.

     

    This takes effect when?
    13 Mar, 09:12 AM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    According to the articles listed below, the distribution will take effect in the 2Q of 2014.

     

    http://bit.ly/N9GT3L
    13 Mar, 09:16 AM Reply Like
  • tomlos
    , contributor
    Comments (1098) | Send Message
     
    Yes... ARCP delivers again. Glad I have been hanging on! Long ARCP & ARCM when it is distributed.
    13 Mar, 09:33 AM Reply Like
  • Captain Pike
    , contributor
    Comments (506) | Send Message
     
    Is it really tough to hang on to something paying 7% and growing? ;)
    13 Mar, 10:08 AM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    Looks like the pre-market enthusiasm didn't hold out. No worries, ARCP & ARCM are great long-term holds.
    13 Mar, 09:50 AM Reply Like
  • tomlos
    , contributor
    Comments (1098) | Send Message
     
    It's been that way for the last few pre-market moves upward...
    13 Mar, 09:52 AM Reply Like
  • brettbrett1213
    , contributor
    Comments (6) | Send Message
     
    does anyone know what the date of record for owning ARCP must be to get the ARCM shares? in other words, if I buy ARCP now, will I qualify for the ARCM shares?

     

    Thanks!
    14 Mar, 08:12 AM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    brett: As far as I know, the date of record has not been listed yet. This spinoff still has to be filed with the SEC, so I think you are safe buying at this time.
    14 Mar, 08:31 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (646) | Send Message
     
    Yes, and a very Positive action by the Company towards identifying inherent asset valuation under the separated entities. Growth continues to exceed Market valuation - ACP is a core holding & continuing to exceed expectations - with the current payout, we love this stock !
    14 Mar, 05:50 PM Reply Like
  • goldenretiree
    , contributor
    Comments (892) | Send Message
     
    Who is we? that love this stock.
    28 Apr, 04:52 PM Reply Like
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