PHOENIX—American Realty Capital Properties‘ adjusted funds from operations were overstated for three full years beginning in 2011 and for the first half of 2014, the net lease REIT said Monday. The revised financial statements, which also revealed a bigger net loss for 2013 and the first quarter of last year than originally stated, were the product of an investigation by the company’s audit committee following last October’s revelation of accounting irregularities that ultimately led to the dismissal or resignations of senior management.

The audit committee’s investigation, conducted with the assistance of Weil, Gotshal & Manges LLP and Ernst & Young LLP, also found that equity awards to then-executive chairman Nicholas Schorsch and then-CFO Brian Block were larger than the REIT‘s compensation committee had approved. ARCP additionally said it has recovered about $8.5 million from payments it made to ARC Properties Advisors, LLC and certain of its affiliates that “were not sufficiently documented or otherwise warrant scrutiny.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.