DALLAS—Locally based TIER REIT, formerly Behringer Harvard REIT I, has named company president Scott Fordham as CEO. Fordham is being succeeded as TIER REIT’s CFO by Dallas Lucas, the company said late Tuesday afternoon.
Coming aboard in 2008, at a time when the current management team was being assembled, Fordham has served in a variety of capacities for the office REIT, most recently as president and CFO. Before he joined TIER REIT, Fordham held various finance and accounting positions with Apartment Investment and Management Co. and Prentiss Properties Trust.
Lucas most recently served as CFO for Intrawest ULC. Before that, he was a founding partner of Pacshore Partners, and formerly served as CEO, president and director at Pacific Office Properties Trust Inc. and as EVP and CFO of Maguire Properties Inc.
Board chairman Chuck Dannis says the REIT’s newly constituted executive team has “a tremendous amount of experience in the public real estate arena, and we are confident that with their leadership we will achieve TIER REIT’s long-term goals.” As outlined in an investor presentation earlier this month, those goals include increasing occupancy, selling non-strategic assets and mitigating interest rate and refinancing risk.
For the first quarter, the REIT on May 15 reported modified funds from operations of $11.5 million, down from $16.1 million the year prior. Occupancy in its portfolio of 14.4 million square feet declined 140 basis points from Q3 2013 to 85%, and the company said the harsh winter weather in many of its markets boosted its operating expenses for the quarter. Its portfolio is spread across more than a dozen markets including Chicago and key cities in Texas and on the East Coast, with the single largest concentration of square footage in Philadelphia at 2.6 million square feet.