Financial Stocks Unable to Gain Traction Today; American Realty Capital in Sale-Leaseback Deal for Red Lobster Properties


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Financial stocks were slightly lower in late Friday trade with the NYSE Financial Sector Index down about 0.1% and the S&P Financial 100 Index declining about 0.3%.

In company news, American Realty Capital ( ARCP ) shares were moderately lower late Friday after agreeing to acquire the property containing over 500 Red Lobster restaurant locations as part of Golden State's Capital's purchase of the Red Lobster chain from Darden Restaurants ( DRI ).

Estimated value of ARCP's sale-leaseback transaction is about $1.5 billion. Approximately 93.5% of the portfolio leases will be structured with initial terms of 25 years with the remaining locations having an average weighted term of around 18.7 years.

ARCP also said the master leases will include 2% annual rent escalations, providing built-in income growth for the company.

ARCP shares were down 1.4% at $13.03 each this afternoon, maintaining a 5-cent margin above its session low. The stock has a 52-week range of $12.13 to $17.32 a share, falling 20.1% in value over that span.

Shares of DRI - which booked about $2.1 billion from the Red Lobster sale - were down over 4% at $48.65 in late trade.

In other sector news,

(+) IBN, India's Bharatiya Janata Party appears set to claim a majority of the 545 seats in the Indian parliament - either winning or leading in 280 races - the first time in 30 years a coalition won't be needed to rule India.

(-) FFKT, Completes redemption of one-third of its outstanding Series A preferred stock, paying $10.2 mln - or $1,000 face value of each of the 10,000 shares plus accrued dividends of $22.50 per share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: ARCP , DRI

MT Newswires

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