VEREIT
| Company type | Public |
|---|---|
| Industry | Real estate investment trust |
| Predecessor | American Realty Capital Properties Inc. (ARCP) |
| Founded | 2010 |
| Founder | Nicholas Schorsch |
| Defunct | November 1, 2021 |
| Fate | Acquired by Realty Income |
| Headquarters | Phoenix, Arizona , United States |
| Products | Single-tenant retail, restaurant, office, and industrial properties |
| Parent | Realty Income (from November 1, 2021) |
VEREIT, Inc. was a real estate investment trust based in Phoenix, Arizona that focused on properties including single-tenant retail, restaurant, office, and industrial sectors. By the end of 2020, its portfolio comprised 3,831 assets covering a total of 89.7 million square feet. In November 2021, the company was acquired by Realty Income.
The firm initially operated under the name American Realty Capital Properties Inc. (ARCP) but changed its name after an accounting scandal. The new name, VEREIT, is inspired by the Latin word "veritas," which means truth.
History
Established in 2010 by Nicholas Schorsch, VEREIT expanded rapidly through strategic acquisitions. In November 2013, it purchased CapLease, adding 68 properties with more than 13 million square feet. In January 2014, it acquired 120 properties from funds managed by Fortress Investment Group for $601.2 million. The February 2014 acquisition of Cole Real Estate Investments positioned VEREIT as the largest publicly traded net lease REIT; Cole was later sold to CIM Group in February 2018.
In October 2014, the company revealed a $23 million accounting discrepancy and terminated CFO Brian Block amid claims that insiders had earned over $900 million in fees. Founder Nicholas Schorsch stepped down as chairman in December 2014. To regain investor trust, the company rebranded to VEREIT in July 2015.
In September 2019, VEREIT and former executives—including Schorsch and Block—agreed to a combined settlement of $1.025 billion to resolve securities fraud lawsuits. Block received an 18-month prison sentence in 2017. Furthermore, VEREIT settled outstanding shareholder lawsuits for $15.7 million.
On November 1, 2021, Realty Income finalized its acquisition of VEREIT, enhancing its presence and operations in the global net lease real estate market.