NEW YORK (TheStreet) -- American Realty Capital (ARCP) shares are climbing, up 1% to $12.56, following the announcement of a deal to purchase most of restaurant chain Red Lobster's portfolio for $1.5 billion.
American Realty CEO Nicholas Schorsch detailed the sale-leaseback transaction in an interview with TheStreet after yesterday's closing bell.
The firm intends to sell its shopping center portfolio to Blackstone Group (BX) in order to finance the deal in which the company will take over 500 of the chain's 700 locations.
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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."