VEREIT

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VEREIT, Inc.
FormerlyAmerican Realty Capital Properties Inc., or ARCP
TypePublic company
NYSE: VER
ISINUS92339V1008
IndustryReal estate investment trust
Founded2010; 11 years ago (2010)
FounderNicholas Schorsch
Defunct1 November 2021 Edit this on Wikidata
Headquarters
Phoenix, Arizona
,
U.S.
Key people
Glenn J. Rufrano, CEO
Michael J. Bartolotta, CFO
RevenueDecrease US$1.161 billion (2020)
Increase US$-201 million (2020)
Total assetsIncrease US$13.324 billion (2020)
Total equityDecrease US$6.804 billion (2020)
Number of employees
160 (2020)
Websitevereit.com
Footnotes / references
[1]

VEREIT, Inc., headquartered in Phoenix, Arizona, was a commercial property real estate investment trust. The company invests in single-tenant retail, restaurant, office and industrial properties. As of December 31, 2020, the company owned 3,831 properties with an aggregate of 89.7 million square feet.[1]

The company was formerly known as American Realty Capital Properties Inc. and it changed its name after an accounting scandal. Its name was derived for the Latin word "veritas", meaning truth.[2] The company was acquired by Realty Income in 2021, with the merger closing in November.

History[]

The company was founded in 2010 by Nicholas Schorsch.[3]

In November 2013, the company acquired CapLease, adding 68 properties totaling over 13 million square feet.[4]

In January 2014, the company acquired 120 properties from funds managed by Fortress Investment Group for $601.2 million.[5]

In February 2014, the company acquired Cole Real Estate Investments, becoming the largest publicly traded net lease REIT.[6] Cole was sold to CIM Group in February 2018.[7]

Accounting scandal[]

In October 2014, the company admitted to a $23 million accounting error and fired chief financial officer Brian Block.[8]

Lawsuits alleged that insiders received over $900 million in fees from the company.[9]

In December 2014, Schorsch resigned as chairman.[10][11]

In July 2015, the company changed its name to VEREIT.[12][2]

In September 2019, certain defendants agreed to pay $1.025 billion, consisting of $738.5 million from the company, $225 million from the company's former external manager and its principals including Nicholas Schorsch, $12.5 million from the company's former CFO Brian Block who was found guilty of securities fraud in 2017 and sentenced to 18 months in prison, and $49 million from the company's former auditor Grant Thornton.[13][14] VEREIT also settled pending litigation by plaintiffs that were not part of the class action for $15.7 million.[15]

Acquisition by Realty Income[]

In April 2021, Realty Income agreed to acquire the company.[16][17][18] The merger was closed on November 1, 2021.[19]

References[]

  1. ^ a b "VEREIT, Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b Gopal, Prashant (July 28, 2015). "RCP Emerges From Scandal With a New Name: VEREIT". Bloomberg News.
  3. ^ Carlyle, Erin (October 29, 2014). "Schorsch's American Realty Capital Properties Fires CFO Over Inflated Earnings". Forbes.
  4. ^ "American Realty Capital Properties Announces Closing of CapLease Acquisition" (Press release). PR Newswire. November 5, 2013.
  5. ^ "American Realty Capital Properties Completes Acquisition of Fortress Portfolio" (Press release). PR Newswire. January 9, 2014.
  6. ^ "American Realty Capital Properties Completes Acquisition of Cole Real Estate Investments Creating Largest Net Lease REIT" (Press release). PR Newswire. February 7, 2014.
  7. ^ "CIM ACQUIRES COLE CAPITAL® FROM VEREIT®" (Press release). CIM Group. February 1, 2018.
  8. ^ Wursthorn, Michael (November 5, 2014). "Schorsch Brokerage Tells Advisers Not to Recommend Own Company Stock". The Wall Street Journal.
  9. ^ DiStefano, Joseph N. (April 20, 2015). "Suit: Schorsch, aides milked $900MM fees before real estate scandal". The Philadelphia Inquirer, LLC.
  10. ^ Louis, Brian; Gopal, Prashant (December 15, 2014). "Schorsch Resigns as Chairman of American Realty Capital". Bloomberg News.
  11. ^ "Nicholas S. Schorsch Resigns from American Realty Capital Properties, Inc" (Press release). PR Newswire. December 15, 2014.
  12. ^ "VEREIT™ New Corporate Name for American Realty Capital Properties" (Press release). PR Newswire. July 28, 2015.
  13. ^ Heller, Matthew (November 9, 2017). "Ex-American Realty CFO Gets 18 Months in Jail". CFO.
  14. ^ Stempel, Jonathan (September 30, 2019). "Vereit, others reach $1.025 billion settlement over American Realty accounting". Reuters.
  15. ^ "VEREIT® Enters Into Settlement Agreements and Releases with Additional Shareholders" (Press release). PR Newswire. February 11, 2019.
  16. ^ Wiles, Russ (April 29, 2021). "Phoenix real estate giant Vereit to be acquired, move headquarters". The Arizona Republic.
  17. ^ "Realty Income To Merge With VEREIT® In All-Stock Transaction" (Press release). Realty Income. April 29, 2021.
  18. ^ Sampath, Uday; Raj, Shreyasee (April 29, 2021). "Realty Income to buy commercial property landlord VEREIT for about $11 billion". Reuters.
  19. ^ "Realty Income Closes Merger With VEREIT". www.realtyincome.com. Retrieved 2021-11-02.

External links[]

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