American Realty Capital Properties Inc. (ARCP) announced last week certain accounting misstatements, prompting RCS Capital's board of directors to announce that they have taken "a number of steps to ensure the continued strength and financial integrity of the company's wholesale distribution platform and its overall business."
"Given the corporate announcements made by American Realty Capital Properties (ARCP) since October 29, and the effect those announcements have had on RCAP's market valuation, RCAP would like to clarify its relationship with ARCP," the company said.
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Real estate mogul Nicholas Schorsch is chairman of both companies.
RCS Capital reiterated that it and American Realty Capital Properties are two separate and independent public corporations, emphasizing the they have separate management teams, separate and distinct boards of directors, separate and distinct accounting functions, and are competitors in non-traded REIT distribution.
Lastly, the RCAP Board, Audit Committee and its management team said they have full confidence in RCAP's reported financials, accounting and internal controls and look forward to providing additional detail on RCAP's earnings conference call which is scheduled for Thursday, November 13.