American Realty Says Accounting Error Was Intentionally Hidden

American Realty Capital Properties Inc., the landlord that lost almost a fifth of its market value yesterday, said the resignation of two top executives was the result of an accounting error that was intentionally concealed.

The issue began with a mistake in the first quarter, Chief Executive Officer David Kay said during a conference call yesterday. The New York-based real estate investment trust changed its accounting method in the second quarter and a number was included that was used to “conceal” the mistake from the prior period, he said. The original error wasn’t intended to inflate results, he said.