Although members of the company insist that “we admire Mr. Ullman personally and professionally and wish him all the best,” Cedar Shopping Centers Inc (CDR) is still hoping for a boost in stock price when its CEO Leo Ullman retires after 13 years as president and CEO of the real estate investment trust (REIT)[1]. Since the beginning of 2011, Cedar stock has been “among the worst-performing REITs” and has declined about 12.5 percent since the beginning of the year. Ullman says that his decision to retire is “purely voluntary” and has nothing to do with company share performance, but rather is related to his 72nd birthday in July and the desire to “put a succession plan in place.”
Bruce Schanzer, who is currently the managing director of real estate and investment banking at Goldman, Sachs & Co will become president and CEO of Cedar as of June 15, 2011[2]. Ullman will continue with the company in a consulting role through September of this year.
Cedar owns and operates 131 shopping centers, 75 percent of which are anchored by supermarkets or drugstores. As a result of this structure, in part, the company as struggled with “high unemployment, anemic sales and a slower-than-expected recovery.” The company hopes that Ullman’s departure will ease market “frustration” with Cedar’s business plan.
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[1] http://online.wsj.com/article/BT-CO-20110601-711947.html
[2] http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1636708
