Realty Income CEO John Case leaves abruptly

  • Push-out Score suggests push-out forces
  • After about five years in the position
  • Praise, thanks and good wishes for Case
  • Sumit Roy taking over
  • Case said 65 words

(exechange) — San Diego, California, October 16, 2018 — John Case, chief executive of Realty Income, leaves. It is an abrupt change. As announced by Realty Income Corporation in a news release on Tuesday, October 16, 2018, John P. Case leaves his post as Chief Executive Officer at the real estate investment trust after about five years in the role, effective immediately.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.1 years, according to data compiled by exechange.

Case’s duties will be taken over by Sumit Roy, most recently Chief Operating Officer of Realty Income Corporation.

No reason given

In the announcement, Realty Income did not explicitly explain the obviously compelling reason for Case’s sudden move, leaving room for speculation.

Precise information about Case’s future plans was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the position abruptly and without a reasonable explanation.

“Succeeding”

Realty Income said: “Sumit Roy, the Company’s President and Chief Operating Officer, has been appointed Chief Executive Officer and to the Board of Directors, effective immediately, succeeding John P. Case.”

Share price decline

The change follows a decline in the share price of Realty Income Corporation since July 2016.

Chaired by Michael D. McKee

Realty Income Corporation is chaired by Michael D. McKee.

Michael D. McKee has been Realty Income’s Director since August 1994 and Non-Executive Chairman of the Board since February 2012.

In the position of CEO since 2013

Case has been the Chief Executive Officer since September 2013.

He joined Realty Income in 2010 as Executive Vice President, Chief Investment Officer and served in this capacity until March 2013, when he was promoted to President, Chief Investment Officer.

Prior to joining Realty Income, Case served for 19 years as a New York-based real estate investment banker.

He began his investment banking career at Merrill Lynch, where he worked for 14 years, and was named a Managing Director in 2000.

Following his tenure at Merrill Lynch, Case was co-head of Americas Real Estate Investment Banking at UBS and later the co-head of Real Estate Investment Banking for RBC Capital Markets, where he also served on the firm’s Global Investment Banking Management Committee.

During Case’s investment banking career, he was responsible for more than $100 billion in real estate capital markets and advisory transactions.

Case currently serves on the board of directors of Duke Realty Corporation (NYSE: DRE) (February 2018 – present) and is also a member of the Board of Trustees of Washington and Lee University.

In addition, Case is extensively involved in the broader real estate industry, serving on the Executive Board of the National Association of Real Estate Investment Trusts (NAREIT), The President’s Council of the Real Estate Roundtable, and as a member of the International Council of Shopping Centers (ICSC).

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered John Case’s sudden move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 43.2018 ($).