Public, non-traded REIT American Realty Capital Trust V (ARC Trust V) announced today that is has filed an application to list on the New York Stock Exchange. Subject to NYSE approval, the REIT expects to begin trading during Q3 of 2015.
At the time of listing, it will launch a tender offer to purchase up to $125 million of its shares of common stock plus change its name to American Finance Trust, Inc. and trade under the symbol “AFIN.”
ARC Trust V, which has mostly focused on net lease real estate, will expand its investment focus to include originating and acquiring first mortgages and other debt securities tied to commercial real estate. The REIT views this market as under-concentrated amongst other real estate investment trusts and expects to generate attractive current yields and potential capital appreciation through new investment possibilities.
“Over the next three years, we anticipate a substantial volume of commercial loan maturities with insufficient refinancing options available through traditional sources,” commented Don MacKinnon, ARC Trust V’s Chief Executive Officer and President.
MacKinnon was just recently appointed CEO and President by the REIT’s Board and replaces William Kahane, who resigned effective April 19, 2015.
“We intend to leverage the company’s scale, management acumen and financial resources to capitalize on these opportunities that will likely witness limited participation from the more traditional financial institutions given their increasing regulatory and risk-profile constraints,” added MacKinnon.
ARC Trust V’s portfolio includes 463 properties leased to 43 tenants resulting in 100 percent occupancy. The properties are located in 37 states and are occupied by tenants that represent 22 industries.