In addition to his position as Chairman, Urstadt
is also named President and Chief Executive
Urstadt presents a new strategic plan for the
company, which his fellow directors endorse.
Five simple principals are adopted:
1. HRE would invest primarily in one property
type (i.e., open air retail centers) and become
expert in that field.
2. The portfolio would be located in the NYC
suburbs, which the Board and executives know
3. HRE would manage and lease its own
properties, which was a new concept for REITs at
the time (given tax law changes).
4. HRE would operate with low leverage, which
at the time was a contrarian position for a real
5. HRE would primarily be the sole owner of its
properties and avoid complicated joint venture
The company plans to transform its diverse
collection of 24 properties, then consisting of 44%
office buildings, 41% retail and centers and 15%
industrial properties, into a more
cohesive portfolio specializing in NYC