NEW YORK (TheStreet) -- Shares of American Realty Capital Properties (ARCP) are plummeting, sharply down 8.57% to $8.22 in early market trading Monday morning, as the company announced that three of its top executive members have resigned.
Chairman Nicholas Schorsch, CEO David Kay, and president and chief operating officer Lisa Beeson have all stepped down this morning, after the REIT disclosed accounting errors in October, Bloomberg reports.
One of the country's largest real-estate investment trust is under investigation by the FBI and the SEC for accounting irregularities, after revealing earlier this year that it overstated a common measure of profitability during the first and second quarters of 2014, the Wall Street Journal reports.
ARCP added that lead independent director William Stanley will act as CEO and chairman until permanent replacements are named.
Separately, TheStreet Ratings team rates AMERICAN RLTY CAP PPTY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RLTY CAP PPTY INC (ARCP) a SELL. This is driven by some concerns, 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 poor profit margins and generally disappointing historical performance in the stock itself."