American Realty Capital Properties, Inc. (NASDAQ: ARCP) today announced a plan to spin off substantially all of its multi-tenant shopping center business into a publicly traded REIT, American Realty Capital Centers, Inc., that will operate under the name “ARCenters” and that is expected to trade on The NASDAQ Global Market under the symbol, “ARCM.” ARCP’s operating partnership will retain 25% of ARCM.
ARCenters will have a focused strategy to invest in high-quality, well located, dominant power centers, grocery-anchored neighborhood centers and anchored community centers that generate attractive risk-adjusted returns. As part of the spun-off portfolio, ARCenters is expected to initially own 69 multi-tenant shopping center properties and the spun-off portfolio properties would be 47% located in the top 20 MSAs. ARCP estimates that ARCenters’ 2014 net operating income (“NOI”) from its portfolio will be in excess of $139 million. ARCenters’ portfolio would total approximately 11.8 million total square feet, with properties located in 26 states. After giving effect to the spin-off, ARCenters’ portfolio would be 96.3% leased as of January 31, 2014, with substantially all the portfolio possessing favorable 3-mile population and income demographics of 69,000 and $71,000, respectively.
