The search for new Chief Financial Officer (CFO) and Senior Vice President at Denver, Colorado-based multifamily real estate investment trust (REIT), UDR, Inc. (UDR - Free Report) , has finally came to an end with the appointment of Tom Herzog. He will take over the reins effective January 1, 2013.
Tom Herzog succeeded David Messenger, who resigned from the post on May 31, 2012, for another opportunity outside the company. Messenger served the company as CFO between June, 2008, to May, 2012, and as Senior Vice President since January 2007.
Herzog has held top executive posts at many industry giants. Prior to joining UDR, he served a real estate investment private company called Amstar as CFO. He also served as CFO for four years at one of the competitors of UDR, Apartment Investment & Management Co. (AIV - Free Report) , popularly known as Aimco. Herzog’s REIT experiences also include two years as CFO at HCP, Inc. (HCP - Free Report) – a hybrid REIT firm.
We believe that Herzog’s comprehensive sector know-how and expertise will prove beneficial for UDR. We expect the company to reach new heights benefitting from his proficiency in strategic analysis.
As a point of reference, the American REIT industry has recently gone through vital top executive changes. Recently, a leading REIT financial services firm, CBRE Group Inc. (CBG - Free Report) appointed Robert E. Sulentic as their new CEO with the retirement of its existing CEO. Also, CBRE’s rival – Jones Lang LaSalle Inc. (JLL - Free Report) – announced the transition of two senior personnel.
UDR engages in management, acquisition, dispositions, development and redevelopment of attractive real estate properties in targeted U.S. markets. As of September 30, 2012, UDR owned or has ownership interests in 54,985 apartment homes, which includes 2,441 homes under construction.
UDR is expected to release its fourth-quarter 2012 results on February 4, 2013. The Zacks Consensus Estimate for fourth quarter FFO (fund from operations) is currently pegged at 34 cents per share.
We have a long-term Neutral recommendation on UDR. Also, it holds a short-term Zacks #3 Rank (Hold).
Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.