open letter to "REITWRECKS" Concerning ARCT

masterxbeam
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open letter to "REITWRECKS" Concerning ARCT

Post by masterxbeam » Sat Mar 03, 2012 6:19 pm

Dear ReitWrecks:

I can not sit silently anymore! I am a financial advisor who has been selling ARCT for four years now to my clients and I would come to this website from time to time and read your vicious threads titled :

American Realty Capital Properties: Let's Play Make Believe!
1, 2 by REIT Wrecks » Mon Jul 18, 2011 8:04 pm

and

American Realty Capital Trust: FFOol Me Once...
by REIT Wrecks » Fri Jun 17, 2011 11:00 am

as well as

I Run A Non-Traded REIT, And I Am A Rock Star
by REIT Wrecks » Tue Apr 05, 2011 1:15 pm

and all i kept thinking was "what am I missing?" I have conducted "my due dillengence" with ARCT for many
years now and never could verify the "gross misconduct" that this management team has committed according to your past headlines listed above. What I CAN verify is that I have clients in this Reit for 2-4 years making a total return of 19-33% (based on friday's close at 10.49 with 4.9 million shares traded )with a dividend that was virtually tax free.

You made a very watered down "apology" that was recently "tucked away" in the background of a reply thread. I suggest that you should make it available as a new posting on this website as its own thread for all to read like you did on all the negative thread topics . Highlight that it is now the largest REIT traded on the Nasdaq and the highest quality (tenant ratings) rated triple net lease on ANY public market. Feel free to compare ARCT to "O" or "NNN" if you need to verify that POSITIVE fact! Bottom line is this invest was nothing but a HOMERUN for my clients and anyone who did NOT listen to you.

FAIR is FAIR ...... show some humility and right the wrongs of your past indiscretions

P.S. I am not a member of the ARCT management team , not Nick, not a wholesaler etc .....as stated above i am just an advisor who believed in a company that you constantly trashed to hell.

eacinv
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by eacinv » Sun Mar 04, 2012 7:23 pm

Hey RW, Could you please show some humility in the form of a you tube cartoon.....no need to sway from your level of professionalism now.

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Re: open letter to "REITWRECKS" Concerning ARCT

Post by REIT Wrecks » Sun Mar 04, 2012 8:41 pm

Hah! That's funny. How's this??
P.S. I'm an income-oriented retail investor, and it's 2008. I decide I need CRE exposure, and I like retail triple net leases. I have a choice between:

(A) a blind pool REIT with no operating history, a 7% commission, low transparency, high fees, no liquidity and a 7% dividend that can't be supported by cash flows, or

(B) a REIT with a 40 year operating history, 2,270 properties already in the portfolio, a 6.7% dividend fully-supported by FFO & cash flow (yield based on the closing price of the REIT's common stock on February 1, 2008), FULL liquidity, and a consistent record of increasing the dividend. The most recent dividend increase was just a month earlier -- the company's 41st consecutive quarterly dividend increase, and the company's 47th dividend increase since "B" went public in 1994. If I want to buy "B", I pay a $29.95 commission.

Which one should I choose, A or B?

What is my risk-adjusted return for each?

RealEstateGuy
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by RealEstateGuy » Tue Mar 06, 2012 9:44 am

I guess it's tough to own up to mistakes for some.... sarcasm is always the answer when faced with facts that make RW look bad. Sorry though, it doesn't cut it on this one. You've beaten this REIT up with what YOU thought were facts and accurate conclusions - but that wasn't the case and now the proof is in. Just own it and face up to it. Comparing a VERY successful investment to one you find with higher returns four years later??? Please. You can do better.

I am an investor in W.P. Carey's CPA 15 non-traded REIT. I don't see a forum here for Carey or CPA 15, but it's another one that is going public with ... get ready for this ... a very nice profit to investors, even through the 2008 real estate collapse! I'm so glad I kept it! looks like CPA 15 has a maret price of around $11.75 / share based on the price of the publicly traded WPC that is aquiring them. Hmmm... a nice dividend along the way then appreciation at the end of the program ... sounds just awful!

Now, I will say that it does seem odd that WPC is aquiring the non-traded CPA 15 because WPC is the sponsor company and created CPA 15. However, I'll take the nice profit !!!!!

I wonder how many of these others will wind up non-so-bad? The market collapse in 2008 washed many real estate invesors out at the bottom. SO much for "liquidity" being a GOOD thing in real estate! Real estate IS an ILLIQUID investment. That's just a fact, so using that as a negative? I don't buy it. There's risk in traded and non-traded REITs, just different. Pick the ones that you believe will be good investments for your needs. Or, skip this sector alltogether - but this idea that "Non-traded = Bad Investment" is just incorrect. Some are good investments, some are not. Simple as that.

masterxbeam
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by masterxbeam » Tue Mar 06, 2012 1:11 pm

Doesn't surprise me that "Reit wrecks" responded the way he did........ very childish. Gave him an opportunity to be a man and he declined.

Humble pie is tough to swallow i guess, what a loser.

Makes me wonder how much more information on this website is "skewed" towards his personal interests...... thats the only conclusion I can make from this behavior.


Peace ReitWrecks...... your credibility is shot.

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Re: open letter to "REITWRECKS" Concerning ARCT

Post by REIT Wrecks » Wed Mar 07, 2012 1:24 am

First, I am glad this thread is developing as it is. Below is an excerpt from post number one on this forum.

"Reader comments and questions are often the most informative parts of the posts on REIT Wrecks, and as I wrote earlier in response to some of those very comments, 'equipped with the facts, investors can always make the choice that's best for them'. Given the dearth of information on non-traded REITs, I am hoping this format will become even more useful in that respect. More importantly, some may consider what I write to be controversial, and this format provides those people with a better platform to respond."

Second, I did acknowledge ARCT's success, without any prompting. Below is what I wrote, word for word:

"I should also point out, in the interest of fairness, that ARCT is doing exactly what it said it would do (listing on a national exchange and providing shareholders with liquidity), and in addition to waiving the internalization fee, there is a price support feature in the offering that helps put their money where their mouth is. All of this is good for investors and advisors, and it is consistent with ARCT's statements regarding strengthening their alignment of interests with shareholders. Alignment of interests has been a big focus of this blog, and not just with ARCT. This topic has provoked some very sharp-elbowed posts from your truly, so I need to (1) acknowledge that this is a great development for ARCT shareholders, and (2) congratulate ARCT management and Nick Schorsch.

In terms of the offering, note that there is a subordinated listing fee that provides management with significant financial incentives to maintain a share price of at least $9.78 six months out from the listing date. This should be relevant in terms of buy/sell decisions, volatility after the offering, etc. The self tender is a little odd, and obviously designed to provide even more price support, but if investors get a statement in April with no red ink and full liquidity, who cares. On the contrary, putting the high front-end loads and hokey definitions of FFO aside for the moment, if they can execute the offering and maintain the price at $10, it's a big success and will help set the standard for future NTR IPOs."

Third, here is a link to the new W.P. Carey forum. Please feel free to treat this forum as your own personal canvas.

http://www.reitwrecks.com/forum/viewforum.php?f=33" onclick="window.open(this.href);return false;

Fourth, nobody answered my question regarding A vs. B... Why?

Finally, I believe eacinv asked specifically for humility in the form of a you tube cartoon. Where is your cartoon??

I was trying to be funny! Come on, don't you get it? Humpty Dumpty?!

Cheers, RW

jbnails
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by jbnails » Wed Mar 07, 2012 7:30 am

I believe the purpose of this site is exactly what is happening (without the finger pointing). I cherish and look forward to other people's comments, which most are more knowlwdgeable with REITs than myself. Start a new subject post and the more constructive comments, positive or negative is extremely re-freshing. While I did notice a lot of ARCT and Nick Schorsch bashing in earlier posts (mid 2011), things change.

I believe comments with facts or comments with speculation needs to be distinguished in the post, however all comments should be posted.

masterxbeam, I would've loved to read you opinions and fact based posts much earlier. There doesn't need to be an ongoing debate, just post the comments and let the readers expand upon subject matter.

I would love to see more new posts on other REITs, like NorthStar.

Now that I am involved in REITs and my only experience is positive, I am trying to educate myself as quickly as possible with what limited time I have. I have seen a few opinions suggesting ARCT is being surpressed until after the tender offer (March 28) after which time the price may increase even more. Something to do about having the index's including ARCT which promotes institution buying. I am not quite sure what triggers what and unfortunately this makes me wonder about the Dutch auction tender.

Any thoughts, any past history on this type of situation?

To all, keep the posts going.

losemoneynow
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by losemoneynow » Wed Mar 07, 2012 10:30 am

I can tell RW is busy with other things in his life, because if he had time to dig into this situation, he would see there is limited cause for celebration for ARCT shareholders. The tender offer is a scam to keep the price of this stock inflated long enough to earn the incentive fee. Without this supporting mechanism, the share price would be closer to its opening price of $6. Second, the only shareholders that have near-term liquidity or those lucky enough to sell their shares via the tender offer. SInce this offer is very limited, most investors will have to wait and see what happens to the value of their shares when the dust settles.

ipfreely
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by ipfreely » Wed Mar 07, 2012 11:18 am

Indeed, RW is a busy man...

Im not sure what losemoneynow is intimating at, if he is at all, and I can't tell you in what way the tender offer is a scam to keep the price elevated. However, I can tell you that the opening price of 6.00 was the result of a trade where roughly 184k shares were sold at $6. (You can get this info from NASDAQ) Some say this was a mistake, makes sense, because who sells at 6...Apparently, there was no limit on an open order. Schorsch suggested the same thing.

Not trying to get into a pissing match here, just wondering how the price is elevated through the tender. Just a question.

masterxbeam
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Re: open letter to "REITWRECKS" Concerning ARCT

Post by masterxbeam » Wed Mar 07, 2012 1:35 pm

lose money wrote: I can tell RW is busy with other things in his life, because if he had time to dig into this situation, he would see there is limited cause for celebration for ARCT shareholders. The tender offer is a scam to keep the price of this stock inflated long enough to earn the incentive fee. Without this supporting mechanism, the share price would be closer to its opening price of $6. Second, the only shareholders that have near-term liquidity or those lucky enough to sell their shares via the tender offer. SInce this offer is very limited, most investors will have to wait and see what happens to the value of their shares when the dust settles.

here are the facts that he has wrong : American Realty Capital DOES NOT GET PAID the Promote (incentive fee) UNLESS the share price is greater then 9.77 ON AVERAGE 30 DAYS after 180 DAYS from the listing date.

The tender offer is only going for 20 business days from the listing date (approx 30 calendar days).

I ask you "LOSE MONEY", how is that tender offering going to hold the price for the other 5 months ?

As for liquidity , look how many shares have traded since March 1st ????? An investor can sell at 10.50 (low end of tender offer) right now fully liquid. Someone must be buying the shares since the only shares out there are the investors who owned the Non-traded portfolio.

I am sure after the tender that ARCT may trade down to 10.05-10.25 range and then start to creep up , that is healthy.

Dont forget the "inclusion" trade that forces the major reit indexes to add ARCT to their positions to the tune of 20 % of the outstanding stock ....... sounds like some good support to me !

The 6 dollar execution is a classic example of a dumb broker putting a market order in for his client (not a limit) and the Market Maker on the deal SCREWING HIM ROYALLY .......

Check your facts BEFORE you post in these forums because many of the things said in here are completely false and can hurt investors who read these posts just as much as the scams that are ot there.

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