Corvex Capital Ups Its Stake in American Realty Capital Properties Inc (ARCP); Calls For Elimination of Current Board

According to the letter, the company’s future leadership needs to assemble a senior management team of the highest caliber, regain access to the capital markets, and implement a capital structure consistent with best-in-class triple net lease REITs. In addition, the new management will have to work to re-build investment grade ratings with the key ratings agencies. They should also stabilize and determine a long term strategy for Cole Capital, and build a sustainable dividend policy. Mr. Meister closes the letter by saying that he and his fund are looking forward to working together with the company’s management to help American Realty Capital Properties Inc. (NASDAQ:ARCP) reach its full potential.

New York-based American Realty Capital Properties Inc. (NASDAQ:ARCP) is an $8.4 billion self-managed commercial real estate investment trust (REIT) focused on investing in single tenant freestanding commercial properties subject to net leases with high credit quality tenants. Shares of the company on Tuesday are trading at $9.25. During the past year, the stock has lost 32.78% of its value.

Among the largest shareholders of American Realty Capital Properties Inc. (NASDAQ:ARCP) is Richard Mcguire’s Marcato Capital Management, which reported ownership of 22.11 million shares of the company as of the end of September 2014. HG Vora Capital Management, led by Parag Vora, disclosed holding 12.35 million shares of the company as of September 30, 2014.

Disclosure: none