UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Amendment No. 2)
(Mark One)
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2014
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 001-35263
AMERICAN REALTY CAPITAL PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
Maryland | 45-2482685 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
2325 E. Camelback Road, Suite 1100, Phoenix, AZ | 85016 | |
(Address of principal executive offices) | (Zip Code) |
(800) 606-3610
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No x
Indicate by check mark whether the registrant submitted electronically and posted on its corporate Web Site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
The number of outstanding shares of the registrants common stock on July 28, 2014 was 907,924,095 shares.
Explanatory Note
This Amendment No. 2 on Form 10-Q/A (this Amendment No. 2) amends our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 that was filed with the U.S. Securities and Exchange Commission (SEC) on July 29, 2014 and amended by Amendment No. 1 thereto on Form 10-Q/A filed with the SEC on March 2, 2015 (the Amended Filing). We are filing this Amendment No. 2 to update Part II, Item 6 and provide Exhibit 101 to the Amended Filing.
Except as set forth in Part II, Item 6 below and in any exhibits attached hereto, no other changes are made to the Amended Filing. The Amended Filing continues to speak as of the date of the Amended Filing. Unless expressly stated, this Amendment No. 2 does not reflect events occurring after the filing date of the Amended Filing, nor does it modify or update in any way the disclosures contained in the Amended Filing.
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PART II
Item 6. Exhibits.
The exhibits listed under Exhibits (following the signatures section of this amended report) are included in, or incorporated by reference into, this Amendment No. 2 to Quarterly Report on Form 10-Q/A.
3
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Amendment No. 2 to its Quarterly Report on Form 10-Q/A to be signed on its behalf by the undersigned thereunto duly authorized on this 12th day of March, 2015.
AMERICAN REALTY CAPITAL PROPERTIES, INC. | ||
By: | /s/ Michael Sodo | |
Michael Sodo Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
Date: March 12, 2015
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EXHIBITS
The following exhibits are included in, or incorporated by reference into, this Amendment No. 2 to Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2014 (and are numbered in accordance with Item 601 of Regulation S-K):
Exhibit No. |
Description | |
10.48 (1) | Employment Offer Letter, dated as of October 21, 2013, by and between American Realty Capital Properties, Inc. and Lisa Pavelka McAlister | |
10.49 (1) | Employment Agreement, dated as of February 24, 2014, by and between American Realty Capital Properties, Inc. and Richard A. Silfen | |
10.50 (1) | Agreement of Purchase and Sale, dated as of June 11, 2014, among certain subsidiaries of American Realty Capital Properties, Inc. party thereto and BRE DDR Retail Holdings III LLC | |
10.51 (1) | Amended and Restated Credit Agreement, dated as of June 30, 2014, among ARC Properties Operating Partnership, L.P., American Realty Capital Properties, Inc., lenders party thereto, and Wells Fargo Bank, National Association, as administrative agent | |
10.52 (1) | First Amendment to Agreement of Purchase and Sale, dated as of July 18, 2014, among certain subsidiaries of American Realty Capital Properties, Inc. party thereto and BRE DDR Retail Holdings III LLC. | |
31.1 (2) | Certification of the Chief Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 (2) | Certification of the Chief Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 (2) | Written statements of the Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 (2) | Written statements of the Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act and is deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise is not subject to liability under these sections. |
(1) | Previously filed with the Registrants Quarterly Report on Form 10-Q for the three months ended June 30, 2014 filed with the SEC on July 29, 2014. |
(2) | Previously filed with the Registrants Amendment No. 1 to its Quarterly Report on Form 10-Q/A for the quarterly period ended June 30, 2014 filed with the Securities and Exchange Commission on March 2, 2015. |
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Real Estate Investments (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2014
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma information as if all of the 2014 Acquisitions and the Cole Merger, ARCT IV Merger and CCPT Merger, as discussed in Note 3 — Mergers and Acquisitions (As Restated), were completed on January 1, 2013 for each period presented below. These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of acquisitions to reflect the additional depreciation and amortization and interest expense that would have been charged had the acquisitions occurred on January 1, 2013. Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $20.6 million and $47.6 million for the six months ended June 30, 2014 and 2013, respectively, and merger and other non-routine transaction related expenses of $167.7 million and $129.4 million for the six months ended June 30, 2014 and 2013, respectively (in thousands).
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Schedule of Future Minimum Rental Payments Receivable for Operating And Capital Leases | The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (in thousands):
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Schedule of Capital Leased Assets | The components of the Company’s net investment in direct financing leases as of June 30, 2014 and December 31, 2013 are as follows (in thousands):
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Restated Consolidated Balance Sheets (Parenthetical) (Detail) (USD $)
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Jun. 30, 2014
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Dec. 31, 2013
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Jun. 30, 2013
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Nov. 08, 2013
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Common stock, par value | $ 0.01 | [1] | $ 0.01 | [1] | $ 0.01 | |||
Common stock, shares authorized | 1,500,000,000 | [1] | 1,500,000,000 | [1] | 1,500,000,000 | |||
Common stock, issued | 907,918,821 | [1] | 239,234,725 | [1] | 221,690,474 | |||
Common stock, outstanding | 907,918,821 | [1] | 239,234,725 | [1] | 221,690,474 | |||
Preferred stock (excluding Series D Preferred Stock) [Member] | ||||||||
Convertible preferred stock, par value | $ 0.01 | [1] | $ 0.01 | [1] | $ 0.01 | |||
Convertible preferred stock, shares authorized | 100,000,000 | [1] | 100,000,000 | [1] | 100,000,000 | |||
Convertible preferred stock, issued | 42,730,013 | [1] | 42,199,547 | [1] | 42,921,213 | |||
Convertible preferred stock, outstanding | 42,730,013 | [1] | 42,199,547 | [1] | 42,921,213 | |||
Series D preferred stock [Member] | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | [1] | $ 0.01 | [1] | ||||
Preferred stock, shares authorized | 21,735,008 | [1] | 21,735,008 | [1] | ||||
Preferred stock, issued | 21,735,008 | [1] | 21,735,008 | [1] | 21,700,000 | |||
Preferred stock, outstanding (in shares) | 21,735,008 | [1] | 21,735,008 | [1] | ||||
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Equity-based Compensation (As Restated) (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2014
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity | The following table details the restricted shares activity within the Equity Plan and Director Stock Plan during the six months ended June 30, 2014:
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Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Performance Schedule | Subject to the New OPP Cap, the pool will equal an amount to be determined based on the Company’s level of achievement of total return to stockholders, including both share price appreciation and common stock distributions (“Total Return”), as measured against an absolute hurdle and against a peer group of companies for a three-year performance period that commenced on October 1, 2013 (the “Performance Period”), with valuation dates on which a portion of the LTIP Units up to a specified amount of the New OPP Cap could be earned on the last day of each 12-month period during the Performance Period (each an “Annual Period”) and the initial 24-month period of the Performance Period (the “Interim Period”), as follows:
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