NEW YORK CITY—Nicholas Schorsch will step down as CEO of American Realty Capital Properties in October, with company president David S. Kay succeeding him in that capacity, Schorsch announced Friday in a letter to shareholders. The letter indicated that the transition in the CEO suite had been planned for some time.
Additionally, “in our continuing effort to enhance corporate governance,” William Kahane and Edward M. Weil Jr. will step down from the net lease REIT’s board of directors, Schorsch said in his letter. Kahane and Weil will focus on their roles at RCS Capital, while the board will include five independent directors with Schorsch serving as chairman.
“The transformation of ARCP has been dramatic, and we are very pleased with what we have built,” Schorsch wrote to shareholders. The REIT now manages nearly $30 billion of assets, he added, and its management team has established the company as “a global leader for pure-play net lease. With all that we’ve already accomplished in the six months since David Kay joined ARCP, we now turn our focus to using the established foundation to maximize the long-term value for our stockholders.”
As spelled out in Schorsch’s shareholder letter, “using the established foundation” translates into putting the brakes on the company’s growth, which has been accelerated over the past year by mergers and acquisitions. There will be “no additional merger activity” in 2014, Schorsch wrote, and he noted that there is no need for additional equity raises this year in support of managing the portfolio for core growth.
Further, the company intends to provide “a more clear, concise and transparent financial framework” that will allow investors and analysts “to better value, measure and model our business.” That means providing an earnings and growth sensitivity matrix that includes Cole Capital, “which has been a cornerstone in the rapidly expanding alternative investment space,” Schorsch wrote.