NEW YORK CITY-American Realty Capital Trust filed plans to raise $87.3 million for an initial public offering and plans to offer 6.6 million shares of its common stock, SEC filings show. The move is part of a plan for the company to become a self-administered real estate investment trust and internalize the management services currently provided by American Realty Capital Advisors, LLC.
The non-traded REIT focuses on net-leasing pharmacies, banks, restaurants and convenience stores in high-traffic locations to high credit quality tenants.
The other big players in the single-tenant triple-net-lease retail space include Orlando-based National Retail Properties, Kansas City-based Entertainment Properties Trust and New York City-based Lexington Realty Trust. With this deal, ARCT will become the second largest REIT in the field next to NNN.
The company intends to continue payment of monthly distributions at an annualized rate of 70-cents per share. The February 2012 distribution will be paid by March 5, 2012 to shareholders of record on Feb. 29, 2012. The company’s 2011 distribution was characterized as approximately 100% return of capital for tax reporting purposes. It also intends to offer to purchase an amount in value of its shares of common stock between $200 million and $250 million from its stockholders, with the ability to increase the offer to purchase by 2% at the discretion of the company.
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