NEW YORK (TheStreet) -- American Realty Capital Property (ARCP) fell to a one-year low of $12.13 on Wednesday after the company announced plans to sell its multi-tenant shopping center portfolio for $1.98 billion in cash to affiliates of Blackstone Real Estate Partners VII (BX).
ARCP expects to complete the deal within 30 days and intends to use the proceeds to fund its purchase of Red Lobster's real estate portfolio. ARCP also increased its full-year target for acquisitions to $4.5 billion.
The company also announced an offering of 100 million shares of common stock with a 30-day option for underwriters to purchase up to 15 million additional shares.
The stock closed down 4.96%, or 64 cents, to $12.26. More than 51.8 million shares changed hands, which surpassed the average volume of 9,749,160.
Separately, TheStreet Ratings team rates AMERICAN RLTY CAP PPTY INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RLTY CAP PPTY INC (ARCP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."