W.P. Carey CEO exits as company undergoes strategic review

Trevor Bond is stepping down two weeks before the firm releases Q4 and yearly earnings. The company said in November it was exploring breaking up into three businesses.

Feb 11, 2016 @ 12:54 pm

By Bruce Kelly

In an unexpected move, the large net lease real estate investment trust and REIT manager W.P. Carey Inc. said Wednesday its CEO and a member of its board, Trevor Bond, was stepping down.

He is being replaced by current Carey board member and former chief financial officer Mark J. DeCesaris, who served as an executive for the company from 2005 to 2013.

The market reacted negatively to the news. At noon on Thursday, shares of W.P. Carey had dropped $4.27 per share, or 7.6%. Shares were trading at $51.62.

Mr. Bond was stepping down “to pursue other interests,” the company said in a statement.

The company said in November it was exploring breaking up into three businesses: a U.S. net lease REIT that would own and manage domestic commercial properties, an international net lease unit, and an asset management company to create nontraded REITs and other alternative investment products.

Along with Mr. Bond's departure, W.P. Carey said it had hired J.P. Morgan Securities as an adviser in its strategic review.

In a press release, W.P. Carey said it would have no further comment about its strategic review until the process has been concluded. Its fourth quarter and full-year earnings are to be released on February 25.

“This does seem out of the blue,” said Paul Adornato, an analyst with BMO Capital Markets Corp. “To have senior management departures two weeks before earnings and more clarity on the strategic review is very unusual.

“Reading between the lines, all we can presume is that the board did not like the direction in which the strategic review was heading,” he said. “Beyond that, what else can we say?”

W.P. Carey has long been a partner with independent broker-dealers, which have sold Carey nontraded REITs for decades.

Mr. Bond was “very well regarded by analysts and investors,” particularly for his credibility and his focus on transparency in the REIT industry, Mr. Adornato said.


What do you think?

View comments

Recommended for you

Featured video


Where in the U.S. are RIAs growing the fastest?

InvestmentNews' deputy editor Robert Hordt talks to senior columnist Jeff Benjamin about his report on how registered investment advisers are faring in different regions of the country.

Latest news & opinion

Top 10 RIAs in the South

These are the largest registered investment advisory firms in the Southern U.S., based on AUM.

Top 10 RIAs in the Midwest

These are the largest registered investment advisers in terms of AUM in the Midwestern U.S.

Top 10 RIAs in the Northeast

These are the largest registered investment advice firms in the Northeastern U.S., in terms of assets under management.

10 predictions for financial advice in 2019

Deloitte expects these 10 changes will hit the financial advice business in 2019.

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print