VEREIT CEO Glenn Rufrano Announces Plans to Sell $2.2B in Properties
Late last week, VEREIT CEO Glenn Rufrano announced that the company—formerly known as American Realty Capital Properties—is selling up to $2.2B of properties to pay off its debts, reduce leverage and, hopefully, turn things around. During a Thursday earnings call, Rufrano told investors “we now have the opportunity for a fresh start.” The CEO has been reforming the retail-focused company significantly since taking the top spot in April, The Real Deal reports. Founded by Nicholas Schorsch in 2011, American Realty Capital Properties owns retail properties across the country, particularly in Florida. In October, it revealed that the CFO had attempted to cover previous accounting errors by misrepresenting cash flow. The scandal forced Schorch and then-CEO David Key to resign, and caused VEREIT’s stock prices to dip dramatically. During the call, Rufrano admitted that the scandal is still haunting the company, as it will have to spend $50M to $55M on litigation. Rufrano has already sold—or plans to sell—over $960M in assets and hopes that other assets, which include properties in non-core markets as well as non-controlling stakes in JVs, restaurants and properties with fixed-rate leases, will be sold by the end of 2016. He also announced the replacement of the board of directors. [TRD]
