Following Audit Committee Review, New Leadership at Brixmor Property Group

by Katie Sloan

New York City — Following the resignation of CEO Michael Carroll, New York City-based Brixmor Property Group Inc. has named Daniel Hurwitz interim CEO effective Monday, February 8.

In addition to Carroll, President and CFO Michael Pappagallo, and Chief Accounting Officer Steven Splain, along with an accounting employee, resigned following the completion of an Audit Committee review that began in late December. The review led the REIT’s board to conclude that specific company accounting and financial reporting personnel were “smoothing” income items — both up and down — between reporting periods in an effort to achieve consistent quarterly same property net operating income growth, an industry non-GAAP financial measure.

A company statement says Brixmor believes the amounts involved were not material to non-GAAP same property net operating income or the company’s GAAP financial results. Brixmor also stated that it expects to meet its previously announced guidance for 2015 FFO attributable to stockholders and non-controlling interests, and is rescheduling its 2015 fourth quarter earnings announcement, originally scheduled for February 8.

Hurwitz, who most recently founded Raider Hill Advisors LLC, is best known in the industry as the longstanding CEO of DDR Corp. In a conference call held February 8, Hurwitz, who has also joined the company’s board, said he would be working to identify a permanent CEO.

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