BEACHWOOD, OH-Scott Wolstein has resigned from Developers Diversified Realty Corp., the retail firm he co-founded with his father 19 years ago. Wolstein spent just a little more than a year as executive chairman of the company.
Daniel Hurwitz replaced Wolstein as president and CEO of the company in November 2009, following a $90.1 million FFO loss in the third quarter of that year. The company’s third quarter 2010 FFO was reported as $63.2 million.
Per his employment agreement, Wolstein is entitled to certain benefits that will cause the company to take a charge in the first quarter, according to a DDR statement. The company did not divulge the amount, though the firm will be discussing its fourth quarter earnings during a conference call on Friday.
The two Wolsteins led the $400 million firm to a successful IPO in 1993, with a portfolio of mostly Kmart-anchored shopping centers in the eastern United States. The company now owns and manages about 570 retail operating and development properties in 41 states, Brazil, Canada and Puerto Rico, about $18 billion of assets totaling about 132 million square feet.
In the statement, Wolstein said he believes the company will continue to thrive after he’s gone. “I enter this new chapter in my professional life with complete confidence that Developers Diversified is in good hands,” he said. He could not be reached for further comment. Wolstein is a member of the board of governors and executive committee of the National Association of Real Estate Investment Trusts, the board of directors of the Real Estate Roundtable, and many other industry and charity committees.
Terrance Ahern, lead director of the company’s board of directors, will now serve as board chairman. Ahern is the co-founder and CEO of the Cleveland-based Townsend Group.
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