NEW YORK, Sept. 3, 2013 /PRNewswire/ -- American
Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) announced
today that it expects to close on the acquisition of approximately
150 net lease properties in third quarter 2013, for $550 million, exclusive of closing costs. These
purchases put ARCP ahead of its targeted acquisition volume for the
period. These properties are 100% occupied , of which 65% are net
leased to investment grade tenants (measured by rents), as
determined by a major credit rating agency, including CVS Caremark,
Dollar General, Family Dollar, Walgreens and Wells Fargo.
Purchased at a weighted average cap rate of approximately
7.8% (calculated by dividing annualized rental income on a
straight-line basis plus operating expense reimbursement revenue,
less property operating expenses, by base purchase price), the
properties are subject to leases with a weighted average remaining
duration of nearly 13 years.
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Thus far this quarter, ARCP has closed on 29 net lease
properties for $33 million, exclusive
of closing costs, 80% net leased to investment grade tenants
(measured by rents), as determined by a major credit rating agency,
purchased at a weighted average cap rate of 8.6%, and leased for a
weighted average remaining duration of approximately 9 years. As of
August 31, 2013, ARCP owns 1,211 net
lease properties that are 100% occupied (excluding two properties
which are vacant and held for sale) with an average remaining lease
term of approximately 10 years to 181 tenants, including 59%
investment grade tenants (measured by rents). This acquisition
activity is consistent with ARCP's previously announced guidance of
$1.1 billion of organic, accretive
acquisitions during the second half of 2013, and further positions
ARCP for expected 2014 growth, which includes $1.0 billion of 2014 acquisitions. Previously
provided 2014 AFFO guidance is for $1.14 to
$1.18 per share.
"We continue to identify and acquire high quality net lease
properties with strong corporate tenants, including a significant
proportion of investment grade tenants, and long-term leases at
attractive purchase prices," noted Michael
Weil, ARCP's President. "These organic investments enable us
to fine tune our portfolio diversification by tenant, industry,
geography and lease duration, further mitigating risk and enhancing
earnings. While maintaining a deliberate focus on the execution of
these organic acquisitions, ARCP remains committed to the
anticipated closing of its announced merger with CapLease, Inc.
("CapLease") (NYSE: LSE) as soon as possible following the
stockholder vote scheduled for September 10,
2013. In addition, ARCP anticipates the finalization of the
proxy for its acquisition of ARCT IV in the next several weeks,
clearing the way for stockholders from both companies to cast their
ballots on that pending merger. As previously announced, ARCP's
annualized dividend will increase immediately by $0.03 per share from $0.91 per share to $0.94 per share per annum upon closing the
CapLease merger."
"Completing the CapLease merger is a significant milestone for
ARCP," noted Nicholas S. Schorsch,
ARCP's Chairman and Chief Executive Officer. "Not only do we
project approximately 10% AFFO per share accretion as a result of
the merger, we hope to augment our intellectual capital with the
addition of Paul McDowell and his
senior management team, who bring distinct build-to-suit
development expertise, while deepening our bench. Closing
CapLease is also an important step in our announced path to
self-management, which we believe will result in significant
stockholder value once concluded. Moreover, I am particularly
pleased with our pace of completed acquisitions in the third
quarter, considerably ahead of forecasts, and properly positioning
ARCP to meet its announced property portfolio targets by year
end."
About ARCP
ARCP is a publicly traded Maryland corporation listed on The NASDAQ
Global Select Market that qualified as a real estate investment
trust for U.S. federal income tax purposes beginning in the taxable
year ended December 31, 2011, focused
on acquiring and owning single tenant freestanding commercial
properties subject to net leases with high credit quality tenants.
Additional information about the ARCP can be found on its website
at www.arcpreit.com. ARCP may disseminate important information
regarding the Company and its operations, including financial
information, through social media platforms such as Twitter,
Facebook and LinkedIn.
Additional Information about the CapLease Merger and Where to
Find It
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. In connection with the proposed CapLease
merger, CapLease filed a definitive proxy statement on Schedule 14A
with the Securities and Exchange Commission ("SEC") on July 31, 2013 and a form of proxy was mailed to
CapLease's common stockholders. The proxy statement contains
important information about the proposed CapLease merger and
related matters. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT
(INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER
RELEVANT DOCUMENTS FILED BY ARCP OR CAPLEASE WITH THE SEC CAREFULLY
IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT ARCP, CAPLEASE AND THE PROPOSED
CAPLEASE MERGER.
Investors and security holders of CapLease will be able to
obtain free copies of the proxy statement and other relevant
documents filed by CapLease with the SEC (if and when then become
available) through the website maintained by the SEC
at www.sec.gov. Copies of the documents filed by CapLease with
the SEC are also available on CapLease's website
at www.caplease.com, and copies of the documents filed by ARCP
with the SEC are available on ARCP's website
at www.arcpreit.com.
The directors, executive officers and employees of CapLease may
be deemed "participants" in the solicitation of proxies from
stockholders of CapLease in favor of the proposed CapLease merger.
Information regarding the persons who may, under the rules of the
SEC, be considered participants in the solicitation of the
stockholders of CapLease in connection with the proposed CapLease
merger is set forth in CapLease's definitive proxy statement filed
with the SEC on July 31, 2013 and the
other relevant documents filed with the SEC. You can find
information about CapLease's executive officers and directors in
its Annual Report on Form 10-K for the fiscal year ended
December 31, 2012 and in its
definitive proxy statement filed with the SEC on Schedule 14A on
April 19, 2013.
Additional Information about the ARCT IV Merger and Where to
Find It
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. In connection with the proposed ARCT IV
merger, ARCP and ARCT IV expect to prepare and file with the SEC a
joint proxy statement and ARCP expects to prepare and file with the
SEC a registration statement on Form S-4 containing a joint proxy
statement/prospectus and other documents with respect to ARCP's
proposed acquisition of ARCT IV. INVESTORS ARE URGED TO READ THE
JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND
SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH THE
SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED ARCT IV MERGER.
Investors may obtain free copies of the registration statement,
the joint proxy statement/prospectus and other relevant documents
filed by ARCP and ARCT IV with the SEC (if and when they become
available) through the website maintained by the SEC
at www.sec.gov. Copies of the documents filed by ARCP with the
SEC are also available free of charge on ARCP's website at
www.arcpreit.com, and copies of the documents filed by ARCT IV with
the SEC are available free of charge on ARCT IV's website
at www.arct-4.com.
ARCP, ARCT IV, AR Capital, LLC and their respective directors
and executive officers may be deemed to be participants in the
solicitation of proxies from ARCP's and ARCT IV's stockholders in
respect of the proposed ARCT IV merger. Information regarding
ARCP's directors and executive officers can be found in ARCP's
definitive proxy statement filed with the SEC on April 30, 2013. Information regarding ARCT IV's
directors and executive officers can be found in ARCT IV's
definitive proxy statement filed with the SEC on April 30, 2013. Additional information regarding
the interests of such potential participants will be included in
the joint proxy statement/prospectus and other relevant documents
filed with the SEC in connection with the proposed ARCT IV merger
if and when they become available. These documents are available
free of charge on the SEC's website and from ARCP or ARCT IV, as
applicable, using the sources indicated above.
Forward-Looking Statements
Information set forth herein (including information included or
incorporated by reference herein) contains "forward-looking
statements" (as defined in Section 21E of the Securities Exchange
Act of 1934, as amended), which reflect ARCP's, CapLease's and ARCT
IV's expectations regarding future events. The forward-looking
statements involve a number of risks, uncertainties and other
factors that could cause actual results to differ materially from
those contained in the forward-looking statements. Such
forward-looking statements include, but are not limited to, whether
and when ARCP will become self-managed and the terms of any
arrangements related thereto, whether and when the transactions
contemplated by either of the merger agreements will be
consummated, the combined company's plans, market and other
expectations, objectives, intentions, as well as any expectations
or projections with respect to the combined company, including
regarding future dividends and market valuations, and estimates of
growth, including funds from operations and adjusted funds from
operations, and other statements that are not historical facts.
The following additional factors, among others, could cause
actual results to differ from those set forth in the
forward-looking statements: (1) the occurrence of any event, change
or other circumstances that could give rise to the termination of
either of the merger agreements; (2) the inability to complete
either of the proposed mergers due to the failure to obtain
CapLease stockholder approval for the CapLease merger, ARCP
stockholder approval to issue shares to ARCT IV stockholders in the
ARCT IV merger, ARCT IV stockholder approval of the ARCT IV merger
or the failure to satisfy other conditions to completion of either
of the mergers, including that a governmental entity may prohibit,
delay or refuse to grant approval for the consummation of one or
both of the mergers; (3) risks related to disruption of
management's attention from the ongoing business operations due to
the proposed mergers; (4) the effect of the announcement of the
proposed mergers on CapLease's, ARCT IV's or ARCP's relationships
with its customers, tenants, lenders, operating results and
businesses generally; (5) the outcome of any legal proceedings
relating to the mergers or the merger agreements; and (6) risks to
consummation of the mergers, including the risk that the mergers
will not be consummated within the expected time period or at all.
Additional factors that may affect future results are contained in
ARCP's, ARCT IV's and CapLease's filings with the SEC, which are
available at the SEC's website at www.sec.gov. ARCP, ARCT IV
and CapLease disclaim any obligation to update and revise
statements contained in these materials based on new information or
otherwise.
SOURCE American Realty Capital Properties, Inc.
