One of the leading real estate investment trust (REIT), Vornado Realty Trust (VNO - Analyst Report), recently announced that its Chief Executive Officer (CEO), Michael D. Fascitelli, decided to step down from his post effective Apr 15, 2013. Consequently, the Board of Trustees appointed Steven Roth as his replacement.
Michael D. Fascitelli, 56, has been with Vornado for 16 years. Since the last four years, he has been serving as the company’s CEO. Post resignation, Fascitelli will continue to be a member of company’s Board of Trustees. During his reign, Vornado achieved great heights benefitting from his vast knowledge in the real estate industry. Also, under his leadership, the company gained much success in strengthening its office portfolio reach in two of the best U.S. long-term office markets.
The new CEO, Steven Roth, 70, has been serving Vornado since 1980. He is currently the Chairman of the company’s Board of Trustees. Notably, he has also been on the post of CEO of Vornado from May 1989 to May 2009, prior to the appointment of Fascitelli. On previous occasions, Roth was also the Chairman of the National Association of Real Estate Investment Trusts (NAREIT).
With his vast know-how in the REIT industry, Roth can easily be regarded as a veteran of that sector. We expect the company to reach new heights benefitting from his coherent and strategic proficiency.
Lately, Vornado reported fourth quarter 2012 results with adjusted FFO (funds from operations) per share of $1.22, beating the Zacks Consensus Estimate by 7 cents. Moreover, the earnings exceeded the year-ago adjusted FFO of $1.03 by 18.4%. The results were attributable to the company’s successful execution of strategic initiatives.
Recently, another REIT UDR, Inc. (UDR - Analyst Report) witnessed management changes. The company appointed a new Chief Financial Officer (CFO) and Senior Vice President, Tom Herzog, in late Dec 2012, after the retirement of its previous CFO in May.
Vornado currently has a Zacks Rank #3 (Hold). REITs that are performing better than Vornado include Agree Realty Corp. (ADC - Snapshot Report) and Simon Property Group Inc. (SPG - Analyst Report). Both these stocks carry a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.