NORTH MIAMI BEACH, Fla.--(BUSINESS WIRE)--Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping centers, announced today that it was streamlining its organizational structure in an effort to gain efficiencies, increase the speed of decision making and lower operating costs. The changes will result in the centralization of operations such that all leasing and property management functions will report to Michael Makinen who was appointed as Chief Operating Officer. Mr. Makinen most recently served as the Chief Operating Officer of Olshan Properties, formerly known as Mall Properties, Inc., a privately owned real estate company with a portfolio of over 16 million square feet of retail, residential and office properties. In his role as COO of Olshan Properties, Mr. Makinen oversaw all aspects of operations, marketing and asset management and successfully improved leasing efficiencies. Mr. Makinen joined Olshan Properties in 2010 having previously served as the head of real estate and development with several major retailers.
Mr. Makinen will report to Tom Caputo, President, who has extended his contract with the company through December 31, 2016. Mr. Caputo will continue to oversee acquisitions, dispositions and the joint venture investment platform. The company’s transition to the new centralized operating structure during the next two months will result in the elimination of 14 existing positions including 3 regional presidents. The organizational changes also contemplate the addition of a new senior vice president of leasing and three new leasing positions focused on marketing and leasing the company’s current vacancies within the southeast and Florida portfolios. The changes announced today are expected to generate net annual expense savings of approximately $2 million per year excluding one-time costs associated with the transition.
“The organizational changes we announced today reflect our commitment to optimizing our operating structure based on the results of our capital recycling program and our strategy to own fewer but more dominant urban assets in our target markets. We are grateful for the leadership and execution provided by our regional teams during the past several years but believe a centralized and streamlined operating structure will facilitate more timely decision making in a more agile and efficient manner,” said David Lukes, CEO. “It was a difficult decision to reorganize, but I am pleased that we are able to welcome Mike Makinen to Equity One who will benefit from Tom’s continued leadership and experience. I have known Mike for more than 10 years and have confidence that his operational skill set will be a tremendous asset for Equity One.”
ABOUT EQUITY ONE, INC.
As of March 31, 2014, our consolidated shopping center portfolio comprised 138 properties, including 116 retail properties and six non-retail properties totaling approximately 14.9 million square feet of gross leasable area, or GLA, 11 development or redevelopment properties with approximately 1.8 million square feet of GLA upon completion, and five land parcels. As of March 31, 2014, our consolidated shopping center occupancy was 93.9% and included national, regional and local tenants. Additionally, we had joint venture interests in 18 retail properties and two office buildings totaling approximately 3.2 million square feet of GLA.
Certain matters discussed by Equity One in this press release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “might,” “would,” “expect,” “anticipate,” “estimate,” “could,” “should,” “believe,” “intend,” “project,” “forecast,” “target,” “plan,” or “continue” or the negative of these words or other variations or comparable terminology. Although Equity One believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that these expectations will be achieved. Factors that could cause actual results to differ materially from current expectations include volatility in the capital markets and changes in borrowing rates; changes in macro-economic conditions and the demand for retail space in the states in which Equity One owns properties; the continuing financial success of Equity One’s current and prospective tenants; the risks that Equity One may not be able to proceed with or obtain necessary approvals for development or redevelopment projects or that it may take more time to complete such projects or incur costs greater than anticipated; the availability of properties for acquisition; the timing, extent and ultimate proceeds realized from asset dispositions; the extent to which continuing supply constraints occur in geographic markets where Equity One owns properties; the success of its efforts to lease up vacant space; the effects of natural and other disasters; the ability of Equity One to successfully integrate the operations and systems of acquired companies and properties; changes in Equity One’s credit ratings; and other risks, which are described in Equity One’s filings with the Securities and Exchange Commission.