(Bloomberg) -- RCS Executive Chairman Nicholas Schorsch and two other top executives resigned from American Realty Capital Properties, the U.S. real estate investment trust that has lost more than a quarter of its value since disclosing accounting errors.
Schorsch stepped down as executive chairman and a director of the New York-based landlord, the company said in a statement today. Chief Executive Officer David Kay also resigned, as did Lisa Beeson, president and chief operating officer. William Stanley will act as chief executive officer and chairman until permanent replacements are named. The changes are effective immediately.
American Realty Capital Properties, or ARCP, fell 27% through last week after reporting on Oct. 29 that it found accounting errors that were intentionally concealed, leading to the resignations of its chief financial officer and chief accounting officer. Schorsch, who controls an empire of real estate companies through his firm AR Capital, was co- founder of ARCP and also its CEO until a planned succession earlier this year.
The actions taken today will stabilize the company and are necessary to strengthen future leadership and strategy, improve governance, and complete a separation from Nick Schorsch and his affiliates, Stanley said in the statement from ARCP. These actions build on ARCPs significant real estate assets and asset management capabilities, and will further restore investor confidence in ARCP.
No wrongdoing was found by Schorsch, according to a separate statement today by AR Capital, a sponsor of nontraded REITs.
ARCP fell 9.6% to $8.13 at 9:31 a.m. New York time. The stock has lost 36% this year.
ARCP will unwind all of its relationships with entities in which Schorsch has an executive or director-level role or is a significant stockholder, the company said. Schorsch will focus his attention on the strategy, growth and management of AR Capital, according to that entitys statement.
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