From left: Nicholas Schorsch and William Stanley
The results of an internal investigation into accounting issues at American Realty Capital Properties boosted shares by 0.9 percent, with the probe finding no material changes to the value of the company’s portfolio.
The audit committee’s probe “did not identify any material changes relating to our real estate ownership, the validity of our leases or our fundamental business operations,” said William Stanley, ARC’s interim CEO.
In October, the company disclosed that it had intentionally covered up accounting errors that overstated cash flow, leading to the resignation of former chair Nicholas Schorsch, along with at least four other executives. The company’s stock still remains down about 20 percent since October, before the errors were disclosed, the Wall Street Journal reported.
The findings were released along with a series of other filings Monday, in which the company restated its earnings and acknowledged that the SEC has launched a formal investigation into the company and subpoenaed documents from them.
“We’ve been working actively to restore both the confidence of the investor community and the ratings agencies,” Stanley said. [WSJ] — Tess Hofmann