2015 Real Estate Industry Update
A landscape for change:
Transforming for the future
November 10, 2015
Welcome
Welcome to Deloitte’s 2015 real estate industry update
The real estate industry has been on quite a journey during the past decade.
I always look forward to our industry update roadshow and meeting over a thousand real estate professionals
from all over the country. One of the highlights for me is being able to kick off each event by moderating a
panel of local real estate executives and listening to their views on the current state of the real estate
industry. This year we are especially looking forward to hearing our panelists’ views on key disrupters in the
industry and how they might affect real estate in the short and long term.
My colleagues and I have prepared a great program for you this year. We are excited about our panel as well as hearing our
national leadership team discuss accounting and tax updates for the industry. We look forward to your active participation and
questions during our program today. If you would like to speak with one of our presenters following our event, please do so.
Our contact information is listed in this book and we always welcome your feedback. Thank you again for joining us today. I
hope you find our 2015 Real Estate Industry Update informative and insightful.
Bob O’Brien
US and Global Deloitte Real Estate Leader
Deloitte & Touche LLP
+1 312 486 2717
[email protected]
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Agenda
Tuesday, November 10, 2015
8:00 a.m.–8:30 a.m.
Registration and breakfast
8:30 a.m.–9:30 a.m.
Welcome and panel discussion
9:30 a.m.–9:40 a.m.
Break and networking time
9:40 a.m.–10:40 a.m.
Accounting update
10:40 a.m.–10:50 a.m.
Break and networking time
10:50 a.m –11:20 a.m.
Accounting update
11:20 a.m.–11:50 a.m.
Tax update
11:50 a.m.–12:00 p.m.
Closing comments and wrap up
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Panelists
Bob O'Brien serves as the Global and US Real Estate Industry Sector Leader for Deloitte,
where Bob works with the Deloitte’s real estate professionals in the US and globally to
leverage Deloitte’s deep industry expertise across consulting, tax, audit, enterprise risk and
financial advisory services. He has over 30 years of public accounting and transaction
experience serving publicly held and privately held clients in various industries, with a focus
on the real estate and hospitality industries. Bob has worked with some of the world’s largest
public REITs, private equity real estate funds and hospitality companies.
Bob O’Brien
US and Global Deloitte
Real Estate Leader
Deloitte & Touche LLP
[email protected]
Leslie Hale
Executive Vice President
and CFO
RLJ Lodging Trust
Mrs. Hale has served as Chief Financial Officer (CFO) for RLJ Lodging Trust (NYSE: RLJ)
since 2007 and was promoted to Executive Vice President in 2013. RLJ is one of the largest
publicly-traded lodging REITs in the United States, with 127 hotels operating across the
country. In May 2011, Mrs. Hale successfully managed the execution of the roll-up and
merger of RLJ Development, a hospitality investment firm with its two affiliated private equity
funds, and the subsequent initial public offering of RLJ Lodging Trust. As CFO, Mrs. Hale is
responsible for all financial matters across RLJ and is intricately involved in the company’s
investment decision-making, daily operations, and long-term strategic planning.
Before joining RLJ, Mrs. Hale held several positions within General Electric Capital Corp.
(GE), including as a Vice President in the Mergers and Acquisitions Group of GE Commercial
Finance. Mrs. Hale was previously an investment banker at Goldman, Sachs & Co., advising
clients across industries on mergers, acquisitions, and corporate finance matters.
Mrs. Hale earned a BBA degree with a concentration in Finance from Howard University and
earned her MBA from Harvard Business School. She currently serves as a member of the
Board of Directors for Macy’s, Inc. and as a Trustee of Howard University.
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Melanie M. Lundquist
Chief Financial Officer
Realterm
Melanie M. Lundquist is a seasoned executive with over 30 years of experience in managing
all aspects of financial functions in entrepreneurial and publicly-traded companies. Currently,
she is the Chief Financial Officer at Realterm, a vertically integrated real estate operator
focused on transportation-oriented assets with over $2 billion in assets under management in
the United States, Canada, Europe and India. Prior to joining Realterm, she held Chief
Financial Officer roles at Travel Advantage Network, Inc., Haven Custom Homes and
Municipal Mortgage and Equity, LLC. Ms. Lundquist spent thirteen years at The Rouse
Company and was Senior Vice President and Corporate Controller at the time of its sale to
General Growth Properties in November, 2004. She joined The Rouse Company from KPMG
LLP in Baltimore, Maryland, where she was a senior audit manager.
Ms. Lundquist is a member of the Maryland Association of Certified Public Accountants and
the American Institute of Certified Public Accountants. She is also a past board chair and
current Board member of Humanim, Inc., a non-profit agency located in Baltimore, Maryland
serving the needs of individuals with disabilities through human services and workforce
development. She also serves on the Advisory Board of Travel Advantage Network.
A summa cum laude graduate of Towson University, Ms. Lundquist lives on a family farm in
Woodbine, Maryland, with her husband, Rob, and their two children.
Mike Sodo
Former Executive Vice
President, CFO, and
Treasurer
VEREIT
Mike Sodo served as Executive Vice President, Chief Financial officer and Treasurer at
VEREIT until October 2015 (NYSE: VER). In this role, he partnered with the Chief Executive
Officer to handle all capital markets activities as well as communication with rating agencies,
lenders and investors. Mr. Sodo also oversaw debt covenant compliance and projections.
Additionally, Mr. Sodo provided oversight and support to the accounting team and related
accounting functions while working closely with the Chief Accounting Officer. Mr. Sodo served
on VEREIT’s Investment Committee, which reviewed for approval all potential property
acquisitions and dispositions.
Prior to joining VEREIT in August of 2014, Mr. Sodo worked at Capital Automotive, a real
estate investment trust, where he served since 2003 in a number of roles including most
recently as Senior Vice President, Director of Financial Reporting and Treasurer. In this role,
Mr. Sodo managed all capital markets activities as well as oversaw all accounting functions.
Prior to joining Capital Automotive, Mr. Sodo worked as an auditor for KPMG LLP. Mr. Sodo
is a Certified Public Accountant and has a Bachelor Degree in Business Administration from
the College of William & Mary.
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Presenters
Johnnie is currently on a management development program assignment assisting Chris
Dubrowski, the director of professional practice for Deloitte’s national Real Estate Services
practice. In this role, Johnnie presents on emerging real estate accounting issues gained
through his development. The role also involves developing industry positions on accounting
and auditing issues, communicating those positions to the Deloitte real estate practice, and
serving as a consultation resource for Deloitte clients and professionals.
Johnnie Akin
Senior Manager
Deloitte & Touche LLP
[email protected]
He has ten years of public accounting experience which includes over nine years of real
estate experience focused on fair value measurements relating to impairments, acquisitions
and troubled debt restructurings, consolidation conclusions, related party transactions, and
public company filings.
Chris Dubrowski is the director of professional practice for Deloitte’s national Real Estate
Services practice. In this role, he assists clients and engagement teams around the country in
identifying and resolving real estate-related technical accounting and auditing issues and
participates in establishing firm positions on emerging accounting issues.
Chris Dubrowski
Partner
Deloitte & Touche LLP
[email protected]
Allison Dyer
Partner
Deloitte & Touche LLP
[email protected]
Allison has 25 years of experience, including 3 years of private accounting experience. Allison
has served public and private companies in a variety of industries, with extensive experience
serving clients in the real estate industry, including real estate investment trusts, investment
companies, and senior living, construction, and hospitality companies. She leads our Deloitte
Growth Enterprise Services practice for the Greater Washington area, delivering a distinctive
client experience through service offerings tailored to address the unique needs of midmarket and privately held companies. Allison has experience with SEC registration
statements and filings, including initial public offerings, and private equity owned
companies. She also serves companies that report under International Financial Reporting
Standards.
Allison serves on the Leadership Council of the Washington Area Women’s Foundation and
served on the board of directors from 2008 to 2014. She has also served as the leader of
Deloitte & Touche’s Women’s Initiative for the southeast region.
Allison is a member of the AICPA, National Association of Real Estate Investment Trusts
(NAREIT) and the National Council of Real Estate Investment Fiduciaries (NCREIF).
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Dean Halfacre
Partner
Deloitte Tax LLP
[email protected]
Dean is a tax partner in Deloitte’s Mclean, VA office. With over 20 years of experience,
Dean’s practice is focused on serving public and private REITs and investment funds. He has
experience with tax issues related to M&A transactions, IPOs, liquidations, dispositions, and
joint ventures. Dean is Deloitte’s real estate tax practice leader for the Greater Washington,
DC region. He is also the national practice leader for REIT conversion transactions and has
advised several public entities on REIT conversion strategies. Dean has been published on
real estate related issues in the Journal of Taxation and the Real Estate Tax Digest and has
lectured on related topics in various external forums.
Dean is a member of National Association of Real Estate Investment Trusts, the Urban Land
Institute, the tax policy advisory committee of the Real Estate Roundtable, and the San
Francisco Planning and Urban Research Association. He is a CPA and received his BS in
Accounting from the College of Charleston.
2015 Real Estate Industry Update A landscape for change: Transforming for the future
Notes
2015 Real Estate Industry Update A landscape for change: Transforming for the future
2015 Real Estate Industry Update A landscape for change: Transforming for the future
2015 Real Estate Industry Update A landscape for change: Transforming for the future
2015 Real Estate Industry Update A landscape for change: Transforming for the future
2015 Real Estate Industry Update A landscape for change: Transforming for the future