American Realty Capital To Spin Off Its Multi-tenant Shopping Center Business

(RTTNews) - American Realty Capital Properties Inc. (ARCP) 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. ARCP's Board has unanimously approved a plan to pursue the spin-off.

The spin-off will be effected through a pro rata taxable special distribution of one share of ARCenters common stock for every 10 shares of ARCP common stock and every 10 limited partnership units in ARCP's operating partnership. The distribution is expected to be completed in the second quarter of 2014.

The spin-off is intended to result in ARCP stockholders receiving a combined dividend that exceeds ARCP's current annualized dividend of $1.00 per share. ARCP currently estimates that ARCenters' annualized dividend for its first year following the spin-off will be at least $0.73 per share. Because ARCP expects to maintain its current annualized dividend of $1.00 per share and after adjusting for the ratio of one share of ARCenters common stock distributed for every 10 shares of ARCP common stock, ARCP stockholders who continue to hold their shares of ARCenters common stock would receive a combined annualized dividend of $1.073 per share - resulting in 7.3% of dividend growth, the company said.