American Realty Capital Properties announced that Glenn J. Rufrano will become its new Chief Executive Officer effective April 1. The former Cushman & Wakefield CEO will succeed David Kay, who left the REIT at the end of last year along with Chairman Nicholas Schorsch amid an accounting scandal.
William Stanley has held the position on an interim basis since December 2014. Stanley will continue as interim Chairman of the Board until the Board completes its search for a Non-Executive Chairman.
Rufrano has a reputation as an astute businessman, which should help the scandal-plagued REIT. Last October, ARCP’s management disclosed that accounting errors had led it to misrepresent its earnings. The stock value began to plummet, and in December Schorsch and Kay resigned from their positions.
ARCP is a publicly traded REIT focused on single-tenant commercial properties across the U.S. It is one of a handful of REITs founded by Nicholas Schorsch. Since going public, the REIT is no longer formally affiliated with American Realty Capital, the umbrella firm for non-traded REITs founded by Schorsch.
“Glenn’s long and successful track record makes him the ideal individual to lead ARCP and set it on a course for long-term growth and value creation,” said Thomas Andruskevich, Interim Lead Independent Director. “Glenn is well known and well regarded for his ability to lead companies through complex situations and turbulent environments.”
Mr. Rufrano commented: “ARCP is a young company, grown rapidly, which now requires a sound business path. I look forward to meeting the management team, thoroughly analyzing the assets and reviewing the details of the balance sheet while at the same time seeking thoughts from the institutional investor community. Once complete, we will organize a strategic plan and begin execution to maximize the value of the core REIT assets, Cole Capital and the enterprise.”
Mr. Rufrano joins ARCP from O’Connor Capital Partners, a real estate investment firm specializing in retail and multifamily residential properties, where he had been Chairman and CEO since 2013. He previously headed New Plan Excel Realty Trust, Centro Global Property Group and Cushman & Wakefield.
He is currently a member of the Board of Directors of Ventas, Inc. and is a trustee of the International Council of Shopping Centers (ICSC). He was previously a director of General Growth Properties.
With the appointment of a new CEO, Leslie Michelson and Governor Edward Rendell announced they will step down from the REIT’s board effective April 1, 2015 to make way for new directors.