Executive Chairman Tom Barrack Reassumes Role
as Chief Executive Officer, Richard Saltzman Departs; Darren Tangen
Becomes President and Mark Hedstrom to Assume Role as Chief
Financial Officer
Colony Capital, Inc. (NYSE: CLNY) (collectively, “Colony
Capital,” or the “Company”) announced today that its board of
directors and its Chief Executive Officer, Richard Saltzman, have
reached a mutual agreement in which Mr. Saltzman, who has served as
CEO since going public four years ago, has resigned as CEO,
President and as a director of the Company. Mr. Saltzman will
remain in a non-executive capacity as Chairman of both Colony
Credit Real Estate Inc. (NYSE: CLNC) and NorthStar Realty Europe
(NYSE: NRE), which are externally managed by subsidiaries of the
Company. Thomas J. Barrack, Jr., the Company’s Executive Chairman,
has taken on the additional role of CEO of the Company. In doing
so, Mr. Barrack reassumes the position he held when he founded
Colony as a private company in 1991, until 2014, when Colony merged
into Colony Financial, Inc.
The Company will be implementing a set of additional
organizational changes to further align with its increasing focus
on its investment management business. Darren Tangen, the Company’s
current Chief Financial Officer, has been named President,
effective immediately, and will resign as Chief Financial Officer,
effective January 1, 2019. Effective January 1, 2019, Mark
Hedstrom, the Company’s current Chief Operating Officer, will
reassume the additional responsibilities of Chief Financial
Officer, a position he held prior to Colony’s 2014 merger into
Colony Financial, Inc.
Additionally, in connection with the exit of certain non-core
business lines and as part of a reorganization and restructuring
plan, Colony Capital will be commencing a series of steps to reduce
overhead and match resources to its renewed set of missions, with
an expected $50 to $55 million in total annual general and
administrative cost reductions over the next 12 to 18 months. These
cost reductions are designed to leave the Company more nimble and
de-centralized, with a focus on pay-for-performance.
In a statement, the Company’s board of directors said: “Since
the combination of Colony Financial and Colony Capital to create
the listed entity Colony Capital, and since the complex merger of
Colony and the NorthStar entities, Mr. Saltzman has tirelessly
worked to position the Company for the future. We are grateful for
his contributions and wish him continued success. We are pleased
that Tom will again be Colony’s CEO.”
“Today I leave Colony well positioned to invest and flourish
through economic cycles. I am proud of what has been accomplished
during my more than 15-year leadership stint at Colony Capital,
including the last four years as a public company. More
importantly, I am optimistic about the long-term outlook for the
Company,” Mr. Saltzman said. “Furthermore, I completely respect and
embrace Tom’s interest in returning to the CEO role as the Founder
and driving force behind the Company for decades. I remain a
substantial shareholder, and he has my full support.”
Mr. Barrack said: “Richard has been my partner and friend for
almost three decades. He is also one of the most highly regarded
executives in our industry. Richard’s impact on many of today’s
leading real estate companies cannot be overstated, and Colony is
no exception. I thank Richard in particular for his help
establishing a permanent balance sheet with which to invest
alongside investors to increase alignment of interests and thus
create greater value for shareholders and LPs alike.”
About Colony Capital, Inc.
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment
management firm with assets under management of $44 billion. The
Company manages capital on behalf of its stockholders, as well as
institutional and retail investors in private funds, non-traded and
traded real estate investment trusts and registered investment
companies. The Company has significant holdings in: (a) the
healthcare, industrial and hospitality property sectors; (b) Colony
Credit Real Estate, Inc. (NYSE: CLNC) and NorthStar Realty Europe
Corp. (NYSE: NRE), which are both externally managed by
subsidiaries of the Company; and (c) various other equity and debt
investments. The Company is headquartered in Los Angeles with key
offices in New York, Paris and London, and has over 400 employees
across 17 locations in ten countries. For additional information
regarding the Company and its management and business, please refer
to www.clny.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. You can also identify forward-looking
statements by discussions of strategy, plans or intentions.
Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and contingencies, many of which are
beyond the Company’s control, and may cause the Company’s actual
results to differ significantly from those expressed in any
forward-looking statement. Factors that might cause such a
difference include, without limitation, our failure to achieve
anticipated synergies in and benefits of the completed merger among
NorthStar Asset Management Group Inc., Colony Capital, Inc. and
NorthStar Realty Finance Corp., the impact of changes to Colony
Capital’s management, employee and organizational structure, the
amount, timing and impact of cost reductions, including whether any
anticipated benefits of such reductions will be realized, the
Company’s financial flexibility, the Company's ability to grow its
investment management business, the timing and pace of growth of
the Company's Industrial platform, the performance of the Company’s
investment in Colony Credit Real Estate, Inc., the Company’s
ability to maintain or create future permanent capital vehicles
under its management, whether the Company will realize any
anticipated benefits from the Digital Bridge partnership, the
Company’s ability to simplify its business and become more balance
sheet-lite, the Company's portfolio composition, Colony Capital’s
liquidity, including its ability to continue to generate liquidity
by more accelerated sales of non-core assets and businesses,
whether the Company will complete or sponsor any compelling
investment opportunities under a predominantly third-party capital
model, the Company's expected taxable income and net cash flows,
excluding the contribution of gains, the Company’s ability to grow
the dividend at all in the future; the impact to the Company of the
management agreement amendments with NorthStar Healthcare Income,
Inc. and NorthStar Realty Europe Corp., whether Colony Capital will
be able to maintain its qualification as a REIT for U.S. federal
income tax purposes, the timing of and ability to deploy available
capital, the timing of and ability to complete repurchases of
Colony Capital’s stock, Colony Capital’s ability to maintain
inclusion and relative performance on the RMZ, Colony Capital’s
leverage, including the Company’s ability to reduce debt and the
timing and amount of borrowings under its credit facility, whether
the Company will benefit from the combination of its broker-dealer
business with S2K Financial, increased interest rates and operating
costs, adverse economic or real estate developments in Colony
Capital’s markets, Colony Capital’s failure to successfully operate
or lease acquired properties, decreased rental rates, increased
vacancy rates or failure to renew or replace expiring leases,
defaults on or non-renewal of leases by tenants, the impact of
economic conditions on the borrowers of Colony Capital’s commercial
real estate debt investments and the commercial mortgage loans
underlying its commercial mortgage backed securities, adverse
general and local economic conditions, an unfavorable capital
market environment, decreased leasing activity or lease renewals,
and other risks and uncertainties detailed in our filings with the
U.S. Securities and Exchange Commission (“SEC”). All
forward-looking statements reflect the Company’s good faith
beliefs, assumptions and expectations, but they are not guarantees
of future performance. Additional information about these and other
factors can be found in Colony Capital’s reports filed from time to
time with the SEC.
Colony Capital cautions investors not to unduly rely on any
forward-looking statements. The forward-looking statements speak
only as of the date of this press release. Colony Capital is under
no duty to update any of these forward-looking statements after the
date of this press release, nor to conform prior statements to
actual results or revised expectations, and Colony Capital does not
intend to do so.
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version on businesswire.com: https://www.businesswire.com/news/home/20181107005268/en/
Investor Contact:Addo Investor RelationsLasse
Glassen310-829-5400orMedia Contact:Blicksilver PRLisa
Baker914-725-5949lisa@blicksilverpr.com
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