American Realty Capital Properties, Inc. (ARCP) shares are up $0.11 to $10.00 in pre-market trading Monday after the REIT reported its fourth quarter earnings results.
The real estate investment trust, whose report had been delayed due to investigation into accounting irregularities, recorded earnings of $0.22 per share on revenues of $418.8 million, up 207% from $136.4 million a year ago. Some analysts were expecting EPS of $0.23 on revenues of $383.06 million. The co.’s revenue doubling in Q4/14 is attributed to an increase in assets and last year’s acquisition of Cole Capital Advisors.
For the full-year 2014, the firm said its revs increased $1.25 billion to $1.58 billion as compared to revenue of $329.3 million in 2013. American Realty Capital also announced that it will establish a common stock dividend later this year, which is expected to be in line with net lease peers and paid on a quarterly basis.
On valuation measures, American Realty Capital Properties Inc. shares, which currently have an average 3-month trading volume of 11.05 million shares, trade at a forward P/E of 11.00 and a P/E to growth ratio of 0.82. The median Wall Street price target on the name is $10.00 with a high target of $12.00. Currently ticker has ‘Buy’ endorsements, compared to 5 ’Holds’ and 1 ‘Sell’.
Profitability-wise, ARCP has a t-12 profit and operating margin of (63.57%) and 7.12%, respectively. The $8.93 billion market cap company reported $416.71 million in cash in its most recent quarter.
ARCP currently prints a one year loss of about 23.50% and a year-to-date return of around 9.40%.
American Realty Capital Properties Inc. focuses on investing in single-tenant, freestanding commercial properties subject to net leases with high credit quality tenants. The REIT was founded in 2010 and is based in Phoenix, Arizona.