ARCP’s Schorsch, Kay Say Goodbye

Both ARCP's Chairman, Nick Schorsch, and CEO, David Kay, have stepped down from their posts amid accounting errors at the largest publicly traded net lease REIT.

American Realty Capital Properties’ Executive Chairman, Nick Schorsch, and CEO, David Kay, have both resigned from the company and its Board of Directors, according to two separate news releases put out by ARCP Monday morning.Schorsch_Kay

ARCP’s President and COO Lisa Beeson has also followed suit and stepped down from her post.

Effective immediately, William Stanley has been appointed Lead Independent Director and Chairman of the Nominating and Corporate Governance Committee. He’ll serve as interim CEO & chairman of the Board until a permanent replaced is chosen. The Compensation Committee has already gone to work in its search for the next CEO and Chairman of the Board  of the the largest publicly traded net lease REIT, thanks to Schorsch who was the culprit of ARCP growing to be a $10 billion company.

But things started to get sour in October once an unnamed  employee spotted errors in its financial statements that could no longer be relied upon as recently as the second quarter of 2014. The news caused the company’s stock to plummet more than 30 percent throughout the day, causing two executives to resign in the midst of the oversights.

The company is currently under investigation for accounting irregularities.

“The actions taken today will stabilize the company and are necessary to strengthen future leadership and strategy, improve governance, and complete a separation from Nick Schorsch and his affiliates,” said Stanley in a prepared statement. “These actions build on ARCP’s significant real estate assets and asset management capabilities, and will further restore investor confidence in ARCP. The Board is focused on finding highly qualified and experienced leadership for the roles of Chief Executive Officer and independent Board Chairman, as well as establishing a best-in-class governance structure. We thank David and Lisa for their service. We will continue to engage with all of our stakeholders and take actions that create long-term shareholder value.”

ARCP is a leading, self-managed publicly traded net lease REIT focused on
investing in single tenant freestanding commercial properties subject to net leases with high
credit quality tenants. ARCP acquires and manages assets on behalf of the Cole Capital non-traded
REITs. ARCP is a publicly traded Maryland corporation listed on The NASDAQ Global
Select Market.

Stay tuned for more in-depth information on ARCP’s undertakings tomorrow.