U.S. stocks completed respectably lower after a progression of financial reports, including a second perusing on final quarter GDP demonstrated a 2.2% yearly development rate, lower than the past 2.6% evaluation.
The S&P 500 dropped 7 points to complete at 2,104.
The Dow rose 5.6% for the month,
Insights about those financial sector stocks that gained during Friday’s trade, are depicted underneath:
RCS Capital Corporation (NYSE:RCAP)’s shares picked up 7.75%, and closed at $11.40, during the last trading session, soon after the news release that American Realty Capital Hospitality Trust, Inc. declared that it has accomplished the formerly declared attainment of the Equity Inns Lodging Portfolio from associates of the Whitehall Real Estate Funds sponsored by Goldman Sachs. The total purchase price was $1.8 billion, exclusive of closing costs.
The Portfolio comprises of 116 hotels totaling 13,744 rooms across 31 states, all franchised by Hilton Hotels & Resorts, Marriott International, Hyatt Hotels and InterContinental Hotels Group. The hotels comprise leading brands such as Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place and Holiday Inn.
The attainment of the Portfolio raises ARC Hospitality’s lodging portfolio to 122 hotels totaling 14,925 rooms, establishing ARC Hospitality as one of the largest owners of select-service hotels in the North American lodging REIT sector.
“We are delighted to declare the attainment of the Equity Inns portfolio, which represents a transformational event for ARC Hospitality,” commented William M. Kahane, Chairman of ARC Hospitality. “In our opinion, Equity Inns offers compelling value among recently marketed and comparable select-service portfolios from the standpoint of both price per key, in addition to on a yield basis. This nationwide portfolio of high-quality, stabilized hotels with strong brand affiliations, geographic diversification and healthy growth dynamics, supports our strategy of providing consistent distributions and the potential for capital appreciation to our investors.”
In connection with the attainment, ARC Hospitality assumed $903.9 million of debt financing which is collateralized by 96 of the 116 properties. Simultaneously with the closing, ARC Hospitality obtained $227.0 million of first mortgage financing for the remaining 20 properties. The sellers will retain a preferred equity interest of $447.1 million that carries no prepayment restrictions or penalties. ARC Hospitality funded the remaining $230.1 million with cash-on-hand from proceeds of the offering of its ordinary stock.
RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC, a partner of RCS Capital Corporation (RCAP), acted as financial advisor to ARC Hospitality. RCS Capital Corporation is under ordinary control with the parent of the sponsor of ARC Hospitality. Goldman, Sachs & Co. and Deutsche Bank Securities Inc. acted as financial advisors to the sellers. Goodwin Procter LLP and Proskauer Rose LLP acted as legal advisors to ARC Hospitality. Sullivan & Cromwell LLP acted as legal advisor to the sellers.
American Realty Capital Properties Inc (NASDAQ:ARCP), raised 6.28%, and closed at $9.81, soon after a real estate investment trust (REIT), declared it anticipates to issue restated financial statements and file amendments to its 2013 Annual Report on Form 10-K and first and second quarter 2014 Quarterly Reports on Form 10-Q, and anticipates to file its Quarterly Report on Form 10-Q for the third quarter 2014 for ARCP and ARC Properties Operating Partnership, L.P. (the “OP”), on Monday, March 2, 2015. The Company also anticipates to restate the OP’s formerly-issued financial statements on Monday, March 2, 2015.
The Company anticipates to host an audio webcast on Monday, March 2, 2015, at 8:30 a.m. Eastern Time to provide a business update and talk about its financial results for the periods of the restatements and the period ended September 30, 2014. William Stanley, interim Chairman and Chief Executive Officer, and Mike Sodo, Chief Financial Officer, will conduct the call.
American Realty Capital Properties Inc (NASDAQ:ARCP), is a leading, self-managed commercial real estate investment trust (“REIT”) focused on investing in single-tenant freestanding commercial properties subject to net leases with high credit quality tenants.
Popular Inc (NASDAQ:BPOP), enhanced 5.41%, and closed at $34.51, soon after the news release that a diversified bank holding company, declared that Banco Popular de Puerto Rico (“BPPR”), its Puerto Rico banking partner, attained certain assets and all deposits (other than certain brokered deposits) of Doral Bank from the Federal Deposit Insurance Corporation (“FDIC”) as Receiver, in alliance with other co-bidders, counting its U.S. mainland banking partner, Banco Popular North America, doing business as Popular Community Bank.
Under the FDIC’s bidding format, BPPR was the lead bidder and party to the purchase and assumption contract with the FDIC covering all assets and deposits to be attained by it and its alliance co-bidders. BPPR reached back to back purchase and assumption contracts with each alliance co-bidder for the transferred assets and deposits.
Richard L. Carrión, CEO of Popular, Inc. said: “this transaction brings additional stability to Puerto Rico’s banking sector. Our participation in this transaction reflects our long-standing commitment to our main market, Puerto Rico. The prospect of adding deposits and loans to our Puerto Rico franchise, in addition to the excellent fit of the New York operations with our existing business in the region, made this an attractive opportunity for us.”
Popular Inc (NASDAQ:BPOP), is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, and Florida.
First Bancorp (NYSE:FBP), enhanced 2.65%, and closed at $6.59, hitting new 52-week high of $6.75, soon after the news release that Aurelio Alemán, President and Chief Executive Officer of FirstBank, partner of First BanCorp, declared the bank’s participation in the attainment of Doral Bank in alliance with Banco Popular de Puerto Rico, in which FirstBank attained 10 branches.
This transaction comprises 10 branches, about $600 million in deposits and a mortgage loan portfolio of $300 million, solidifying FirstBank’s position as the second largest bank in Puerto Rico.
Aurelio Alemán expressed that, “as part of our commitment to Puerto Rico, we forged an alliance with a local competitor, Banco Popular de Puerto Rico, to attain 10 branches of Doral Bank and a portion of its assets. We are convinced that this investment contributes to further strengthen the local banking sector, and thus the economic condition of Puerto Rico.”
This attainment expands FirstBank’s branch network in Puerto Rico to 54, increasing its presence in geographical areas with growth potential for deposits and mortgage origination, two of the main business strategies of the institution. The new branches are located at Aguadilla, Bayamón Plaza del Parque, Bayamón Santa Rosa, Las Catalinas, Isla Verde, Humacao, Mayagüez Western Plaza, Los Paseos, Condado, and Vega Baja.
First Bancorp (NYSE:FBP), is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp. and FirstBank Puerto Rico operate within U.S. banking laws and regulations.
