{"id":1004114575,"date":"2015-03-02T13:25:31","date_gmt":"2015-03-02T21:25:31","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004114575"},"modified":"2022-12-07T22:15:19","modified_gmt":"2022-12-08T06:15:19","slug":"arcp-releases-six-quarters-of-restated-financials","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/arcp-releases-six-quarters-of-restated-financials\/","title":{"rendered":"ARCP Releases Six Quarters of Restated Financials"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/i><\/p>\n

\"William<\/a>

William Stanley, ARCP<\/p><\/div>\n

In a low-key, by-the-book (no pun intended) presentation this morning, American Realty Capital Properties Inc. released its restated financial results for 2013 and the first two quarters of 2014. Those revisions followed revelations last fall of accounting irregularities, which in turn resulted in several key resignations, most prominently of chairman\/CEO Nicholas Schorsch<\/a>.<\/p>\n

In late October, ARCP disclosed $23 million in accounting errors <\/a>in its financials for the first half of 2014, errors that turned out to have been intentionally covered up. Both the company\u2019s CFO, Brian Block, and its chief accounting officer, Lisa McAlister, quickly departed. (McAlister later sued ARCP<\/a>, alleging that Schorsch had directed her and Block to hide previous accounting errors, and that she was fired for having been a whistleblower.)<\/p>\n

And in mid-December, Schorsch himself left, as did David Kay<\/a>, a short-lived ARCP CEO, and Lisa Beeson, the REIT\u2019s president, while independent director William Stanley took the helm as interim chairman & CEO of ARCP. Moody\u2019s promptly downgraded ARCP stock to junk status<\/a>.<\/p>\n

This morning\u2019s conference call emphasized that ARCP\u2019s investigation of the accounting concerns, which was assisted by Weil, Gotshal & Manges L.L.P. and Ernst & Young L.L.P., did not identify \u201cany material changes relating to ARCP\u2019s real estate ownership, rental revenue or fundamental business operations.\u201d<\/p>\n

Further, the presentation added, \u201cThe investigation did not identify any changes to the financial statements or operations of the Cole Capital sponsored non-traded REITs.\u201d<\/p>\n

Importantly, the restatement is now complete, noted Stanley, who added that all relationships with ARCP\u2019s ousted management have been severed and that the REIT\u2019s new headquarters, in Phoenix, symbolizes its separation from its recent past.<\/p>\n

Key points from the presentation included:<\/p>\n