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8-K - FORM 8-K - FOREST CITY ENTERPRISES INC | l42015e8vk.htm |
Exhibit 99.1
AT THE COMPANY | ON THE WEB | |
Robert OBrien
|
www.forestcity.net |
Executive
Vice President Chief Financial Officer
216-621-6060
216-621-6060
Jeff Linton
Vice President Corporate Communication
216-621-6060
Vice President Corporate Communication
216-621-6060
FOR IMMEDIATE RELEASE
Forest City announces June 10 CEO succession
Charles A. Ratner to become Chairman
David J. LaRue to become President and CEO
CLEVELAND, Ohio March 1, 2011 Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today
announced that President and CEO Charles A. Ratner will become Chairman of the Board, and will be
succeeded as President and CEO by David J. LaRue, currently Executive Vice President and COO. The
changes are a part of the companys succession planning process and will be effective following
Forest Citys annual meeting of shareholders on June 10, 2011.
Concurrent with the CEO succession, current co-chairmen Albert B. Ratner and Samuel H. Miller will
each become co-chairman emeritus and will no longer serve on the board. Both will remain active in
their respective areas of the business.
David LaRue is an experienced and visionary leader with the broad strategic, operational and
financial acumen to direct Forest City in the next phase of its growth and evolution, said Ratner,
69. In 25 years with the company, David has achieved a track record of performance and
accomplishment in virtually every aspect of the business. Just as important, he exemplifies and
embraces Forest Citys core values, including integrity, openness, community involvement, diversity
and sustainability. All of these qualities make him uniquely suited to become our next chief
executive. I look forward to my new role as chairman of the board, and to being a resource for, and
partner with David. And we both look forward to continuing to work with Sam and Albert.
LaRue, 49, commented, Im honored by the opportunity to lead such a special company. It is both
extremely gratifying and extraordinarily humbling that Chuck, Albert, Sam and the rest of the board
have entrusted this responsibility to me. During Chucks 16-year tenure as CEO, he has built on the
legacy of his predecessors to strengthen and grow Forest City and to solidify the companys
reputation as one of the
premiere franchises in the real estate industry. Today, having successfully come through some of
the most difficult times in our history, we are poised to take advantage of improving conditions
and renewed opportunity. I and the rest of the management team will continue to build on the
foundation of the past to ensure the future success of Forest City, and preserve and sustain a
values-based culture of empowerment and opportunity for associates.
Ratner noted that LaRue will be the first chief executive in Forest Citys 90-year history,
including 50 years as a publicly traded company, who is not related to the founding family. David
is the right leader at the right time for Forest City, he said. We know that in our business,
family is more about shared values than about lineage. All of our senior executives, including
family members in senior positions who will report to David, are enthusiastic and excited to have
an experienced leader of his caliber as our incoming chief executive. The entire family remains
deeply committed to Forest Citys future growth and success.
David LaRue Background
LaRue joined Forest City in 1986 as a financial analyst and advanced through a series of positions
of increasing responsibility in the companys Commercial Group, including financial manager of the
Tower City Center mixed-use property in Cleveland, vice president and later executive vice
president of real estate operations, and president and COO of the Commercial Group. In March, 2010,
he became executive vice president and chief operating officer at the corporate level, with
companywide responsibility for all real estate operations. Prior to joining Forest City, LaRue was
an internal auditor and financial analyst with The Sherwin-Williams Company.
LaRue is a member of the Board of Directors and Audit Committee Chair of U-Store-It Trust. Active
in professional organizations as well as charitable and community activities, he is a Trustee of
the International Council of Shopping Centers; a Trustee, member of the Executive Committee and
Board President of the Friends of the Cleveland School of the Arts; a Trustee and member of the
Finance Committee of the Lawrence School; and a member of the Board of Trustees of the Greater
Cleveland Sports Commission.
LaRue received a bachelors degree in business/accounting from Wittenberg University. He and his
wife, Cindy, and their children Tessa, Anna, Andre and Paul reside in Rocky River, Ohio, a
Cleveland suburb.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $11.8 billion in
total assets. The Company is principally engaged in the ownership, development, management and
acquisition of commercial and residential real estate
and land throughout the United States. For more information, visit http://www.forestcity.net.
Safe Harbor Language
Statements made in this news release that state the Companys or managements intentions, hopes,
beliefs, expectations or predictions of the future are forward-looking statements. The Companys
actual results could differ materially from those expressed or implied in such forward-looking
statements due to various risks, uncertainties and other factors. Risks and factors that could
cause actual results to differ materially from those in the forward-looking statements include, but
are not limited to, the impact of
current lending and capital market conditions on its liquidity,
ability to finance or refinance projects and repay its debt, the impact of the current economic
environment on its ownership, development and management of its real estate portfolio, general real
estate investment and development risks, vacancies in its properties, further downturns in the
housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of
tenants, anchor store consolidations or closings, international activities, the impact of terrorist
acts, risks associated with an investment in a professional sports team, its substantial debt
leverage and the ability to obtain and service debt, the impact of restrictions imposed by its
credit facility and senior debt, exposure to hedging agreements, the level and volatility of
interest rates, the continued availability of tax-exempt government financing, the impact of credit
rating downgrades, effects of uninsured or underinsured losses, environmental liabilities,
conflicts of interest, risks associated with the sale of tax credits, risks associated with
developing and managing properties in partnership with others, the ability to maintain effective
internal controls, compliance with governmental regulations, increased legislative and regulatory
scrutiny of the financial services industry, volatility in the market price of its publicly traded
securities, litigation risks, as well as other risks listed from time to time in the Companys SEC
filings, including but not limited to, the Companys annual and quarterly reports.
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