Fitch: Results of CEO Changes Mixed for U.S. REITs

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. REITs: Mixed CEO Succession Planning

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863784

Changes at the CEO position among U.S. equity REITs in recent years have been a notable topic of interest, with their outcomes yielding a mixed bag, according to a new Fitch Ratings report.

There have been 25 instances of REITs changing CEOs or announcing pending changes in the CEO suite since Jan. 1, 2013. Though CEO succession planning has impacted large and small issuers alike, the rate of REIT CEO turnover has been lower than the rate of turnover amongst broader corporates. Senior leadership is an important qualitative factor in an issuer's credit ratings. Fitch considers management's financial discipline, strategy and experience, ability to balance the sometimes opposing interests of various constituencies, and willingness and track record of issuing equity.

There have been two types of REIT CEO changes, which range from stable to uncertain situations:

--The predecessor CEO stepped down or retired while the company simultaneously announced a non-interim successor (14 of the 25 instances, 56%);

--Other situations including a CEO resignation, an interim CEO appointment or unique circumstances (11 of the 25 instances, 44%).

A CEO stepping down or retiring while the company simultaneously announces a non-interim successor provides stability concerning the company's strategy, while resignations or interim CEOs can introduce strategic uncertainties. During CEO transitions, Fitch examines whether successors are insiders because this factor is tied to corporate governance and therefore the company's credit profile. Issuers with strong governance and performance may benefit from the continuity of an insider assuming the CEO role. Conversely, companies with operating or financial weaknesses may benefit from new strategic perspective. Of REITs that have changed CEOs since Jan. 1, 2013, 13 have announced new CEOs that were previously insiders.

'U.S. REITs: Mixed CEO Succession Planning', is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Sean Pattap
Senior Director
+1 212-908-0642
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Britton Costa, CFA
Director
+1 212-908-0524
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• EGL Technology Inc. Announces Appointment of Wong Li Fong to Board of Directors
• Gold Reserve Announces Intention to Make Further CVR/Bonus Settlement Offers, to Make Offers to Optionholders, and to Amend Equity Incentive Plan
• Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2026 Results