As Glenn Rufrano takes the helm of American Realty Capital Properties Inc (NASDAQ:ARCP), Oppenheimer analyst Steve Manaker maintained a Perform rating on the commercial real estate company. No price target was provided.
Manaker is optimistic about the new leadership but notes that Rufrano has many issues to address, including "decreasing debt, terming-out debt maturities, and portfolio repositioning." Due to these challenges, the analyst believes the current AFFO run-rate will be diluted and therefore "the stock will best remain an in-line performer over the next 12 months or so." Given the uncertainty of the future direction of the ARCP under new leadership, Manaker is estimating a "run-rate for the current real estate portfolio" instead of estimating 2016 AFFO.
The analyst noted 4Q14 AFFO results missed consensus by $0.01 and that the company's real estate holdings continue to "perform as expected with occupancy at 99.2%." Manaker does not view Cole, ARCP's private capital entity, as a significant wild card. Looking forward, Manaker estimates 2015 AFFO in the range of $0.86 to $0.92.
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Steve Manaker has a total average return of 20.0% and an 87.0% success rate. Manaker is ranked #145 out of 3,562 analysts.