Boston, MA 06/04/2014 (wallstreetpr) – Marcato, Marcato Capital Management LP, is an investment manager who owns nearly 2.4% of the common shares outstanding of American Realty Capital Properties Inc (NASDAQ:ARCP). Recently Marcato sent a letter to Leslie D. Michelson, who is Lead Independent Director of ARCP pointing its concern towards the company’s recent transactions and urges the company to pause on the material transaction activities. Further, Marcato seems to be very frustrated by ARCP’s recent equity issuance at $12 per share and that too after repeatedly saying in public that it had no intentions to do so.
Major highlights of Marcato’s letter to ARCP
The letter mentioned that since Marcato Capital Management LP own approximately 21.8 million shares of ARCP, this makes it ARCP’s largest shareholders, and they are literally disappointed in the share value traded by the company. Further, it stated that Marcato had talked about this issue to other shareholders as well, and this disappointment resonated and echoed. In strict words, Marcato requested the Board members to represent the interests of the existing shareholders and to take utmost care in the future to not undergo any further value destroying activity. The letter was written clearly to give a voice to its and other investors’ frustration and disappointment in American Realty Capital Properties Inc (NASDAQ:ARCP)’s management and Board. Further, it advised the company to pause on heavy and large-scale transactions and to stabilize its credibility in jeopardize.
Is ARCP itself confused about its complicated financials?
Recently American Realty Capital Properties Inc (NASDAQ:ARCP) acquired CappLease, ARCT IV, and Cole, and Red Lobster portfolio and such rapid transactions have led the company to a complicated financial picture and have made it challenging for the investors and the analysts to understand. It also seems that the company itself is not straight about its financials as lately, in 8-k filling, where the company was trying to present its Pro Forma first quarter financial statements, it used a faulty share count. Such an error led to file an amendment telling the market to nullify the previous filling.
