NEW YORK (TheStreet) -- Shares of RCS Capital Corp. (RCAP) are up 10.89% to $10.80 after American Realty Capital Properties (ARCP) said it will receive $60 million from a settlement over RCS Capital's decision to break off a deal for brokerage Cole Capital Partners LLC and Cole Capital Advisors Inc.
The broker-dealer and REIT also agreed to "terminate, unwind or otherwise discontinue all agreements, arrangements and understandings between the two companies and any of their respective subsidiaries," American Realty Capital Properties said.
RCS Capital called off an agreement to buy brokerage Cole Capital for $700 million in cash and stock and had been seeking to distance itself from American Realty Capital Properties, whose stock price has fallen since revealing in late October that it had overstated a common measure of the real-estate investment trust's profitability during the first and second quarters this year, the Wall Street Journal said.
Shares of American Realty Capital Properties are down 0.07% to $9.20.
Separately, TheStreet Ratings team rates RCS CAPITAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate RCS CAPITAL CORP (RCAP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."