Paul, what do you make of todays CBF news ?
Another REIT I own, for capital gains more than income, FUR, interestingly, does more & more joint ventures. Their annual report says they intend to invest with experienced real estate operators who have specialized skill sets in particular markets which can provide the company with both compelling real estate opportunities and the management expertise to maximize their value. Accordingly, it is out intention to create more of these opportunities in the near term"
The Chairman goes on to talk about the "frothy" investment environment and goes on to say that such an environment is challenging for those that pursue an "opportunistic investment strategy" such as FURs.
Im guessing FUR is a more aggressive operator while CBF may be more conservative. Still, why the ousting of the president ?
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CBRE Realty Finance Announces CEO Resignation And Confirms Earnings Guidance
Wednesday April 25, 4:32 pm ET
HARTFORD, Conn.--(BUSINESS WIRE)--The Board of Directors of CBRE Realty Finance, Inc. (NYSE: CBF - News) today announced that Keith Gollenberg will leave the positions of Chief Executive Officer and President and resign as a Director effective immediately. Ray Wirta, Chairman, will assume the additional responsibilities of Executive Chairman and interim CEO and President while the Company recruits a permanent successor to Mr. Gollenberg.
"We want to thank Keith for his valuable contributions in helping to create and launch the Company, and completing our initial pubic offering," Mr. Wirta said. "However, the Board has decided that, at this time, the Company will benefit from an infusion of new leadership to implement our business plan going forward. Our key shareholder, CB Richard Ellis Group, Inc. (NYSE: CBG - News), supports this decision. Our parting with Keith is amicable and we wish him well in the future."
CBRE Realty Finance is undertaking a nationwide search for the new Chief Executive Officer. Mr. Gollenberg has agreed to remain with the Company to assist during the transition.
The Company also announced that for now it will no longer pursue equity real estate investments through joint ventures, and will concentrate solely on the fixed-income arena, where it continues to see attractive opportunities. The existing equity real estate investments, which total $76 million, and represent approximately 19% of the Company's equity are performing as expected. They will continue to be managed in accordance with their original business plans, subject to taking advantage of early opportunities to profitably exit them.
"We have confidence in our business model, and in our ability to build shareholder value through a disciplined investment strategy, complemented by our CBRE / Melody affiliation. These strengths provide a solid foundation on which we can compete in our markets and produce results consistent with the expectations we created at our IPO," Mr. Wirta said.
The Company reaffirms its expectation that it will generate AFFO per diluted share and diluted GAAP earnings per share of between $1.10 and $1.20 and $0.86 and $0.96, respectively, for fiscal year 2007. The Company will announce its first quarter 2007 financial results prior to open of the market on May 8, 2007. |
