NEW YORK CITY—American Realty CapitalProperties has replaced its CFO and chief accountingofficer after an audit committee determined that the netlease REIT's adjusted funds fromoperations had been overstated for the first and secondquarters, while net losses were understated. The audit committee,ARCP said, determined that the accounting errors were “identifiedbut intentionally not corrected” and that previously issuedfinancial information from those quarters should no longer berelied upon.

Brian Block has resigned as CFO and has beenreplaced by Michael Sodo, who most recently wasSVP, director of financial reporting and treasurer. GavinBrandon has been promoted to chief accounting officer,replacing Lisa McAlister.

“The accounting issues are unacceptable and we are taking thepersonnel and other actions necessary to ensure that this does nothappen again,” says CEO David S. Kay. “Asdisappointed as I am, I do not believe that this impairs, in anymeaningful way, what is important about our company—the highquality and diversification of our real estate assets, the depthand strength of our management team, the strong and predictablecash flows from our leases, the strength of our balance sheet andthe size of our market opportunity.”