NEW YORK (TheStreet) -- American Realty Capital Properties (ARCP) was falling -1.3% to $11.79 Thursday after agreeing to sell 76 chopping centers to a Blackstone (BX) and DDR Corp (DDR) joint venture.
American Realty will sell the shopping center for a total of $1.975 billion in cash. The company will use the cash from the deal to pay for its Red Lobster property purchase, and its single tenant strategy.
"By retaining full optionality as we prepared to spin off our multi-tenant portfolio, we were able to identify this transaction, which will allow us to deliver attractive value to our shareholders and further clarify our single-tenant, net lease investment strategy," American Realty president David S. Kay said in a press release.
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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."