In a research report issued Thursday, Oppenheimer analyst Steve Manaker maintained a Perform rating on American Realty Capital Properties (NASDAQ:ARCP), as the company is selling a 50% interest in its Cole Capital business to RCS Capital Corp (RCAP) for $700-830M, depending on incentives. No price target was provided.
Manaker noted, “We remain on the sidelines. In our view, this transaction doesn’t reduce complexity, and dividend coverage is still predicated on Cole Capital EBITDA.” The analyst added, “We view the stock as fairly valued given the complexity, modest dividend coverage and short-term history. The stock trades at our $12.05 NAV and at a 17% multiple discount to the peers.”
