NEW YORK (TheStreet) -- Shares of American Realty Capital Properties (ARCP) are slipping, down 6.44% to $7.70 in morning trading Tuesday, adding to its losses following news that three of its top executive members resigned yesterday.
Chairman Nicholas Schorsch, CEO David Kay, and President and COO Lisa Beeson all stepped Monday morning after the real-estate investment trust disclosed accounting errors back in October, Bloomberg reported.
One of the country's largest REIT 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 reported.
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."