Monday, January 12, 2015

Ted Rollins and his former management team at Campus Crest Communities come under heavy fire

Ted Rollins
The original management team behind Campus Crest Communities, which included CEO Ted Rollins, comes under blistering criticism in a recent article at a major business-news Web site.

Seeking Alpha published the article on December 30, 2014, under the headline, "Management Overhaul=Long-Needed Transformation at Campus Crest, 50% Upside for Shareholders." It uses terms such as "blunders" and "loss of credibility" to describe Rollins' performance.

Rollins has been the subject of numerous posts here at Legal Schnauzer, in part because of his central role in a Shelby County, Alabama, divorce case that we have described as perhaps the most grotesque cheat job we've seen in a courtroom. Also, Rollins has been a major business figure in Alabama, with student-housing developments at four state universities (South Alabama, Troy, Jacksonville State, and Auburn)--plus, his primary corporate law firm has been Bradley Arant, of Birmingham.

Ted Rollins' former wife, Sherry Carroll Rollins, and the couple's two daughters are Birmingham residents.

Here is a summary of what Seeking Alpha reported about the performance of Rollins and his managers:

* Campus Crest Communities' previous management team was removed on the back of multiple blunders and loss of credibility.

* The company's operations are getting streamlined by an exit from construction and development as well as from multiple joint-ventures.

* The dividend payout is finally reduced to a prudent and sustainable level.

* Recently announced actions would solve most of the relevant problems and should close the huge discount to peers.

On the subject of credibility, Seeking Alpha would have known Ted Rollins has shortcomings in that department if it had followed our coverage of the Rollins v. Rollins divorce case. We presented overwhelming evidence that both Ted Rollins and his billionaire cousin, R. Randall Rollins, committed perjury during discovery proceedings in the divorce case.

All of this should not have been news at the highest levels of the nation's financial system. We notified a Wall Street analyst named Paula Poskon, of Robert W. Baird and Company, about some of the ugliness in Mr. Rollins' background, and after initially exclaiming, "Oh, my God!" she tried to strong arm me into not using her quotes.

If financial elites had paid attention to our reporting, perhaps Seeking Alpha would not have recently written this about Campus Crest Communities:

The not so good work by the prior management with multiple value-destroying blunders led to the loss of investor confidence. Previously unresolved portfolio acquisitions, disappointing new deliveries, heavy reliance on joint ventures, underperforming international redevelopments are only some of the issues faced by the company.

On top of this, the earlier dividend payout was at a rate above the Funds From Operation (FFO), which implied high risk of its cut and created another source of investor confusion.

Until recently, CCG was construction and development company as well as owner and operator of student properties. Development activities led to cash flow volatility and elevated risk, when at the same time REIT investors typically want high and stable dividend income. This resulted in a mismatch in terms of what investors wanted and what the company offered, which contributed to CCG's discount to peers.

Recent business restructuring activities gave rise to a number of impairments and one-off charges, which temporary depress accounting earning creating negative sentiment around the company.


Anonymous said...

Well reported LS, seems that a tiger never changes his stripes. After reading about Ted Rollins for years now on your blog, his behavior toward his investors seems almost as abusive as he was/is to his own daughters and ex-wife who gave up most of her life to bring two beautiful people into the world for him. I am always at a loss for words when I see men who have asked women to marry them, have their children and care for them while they pursue their own dreams/careers and the wife puts hers on hold until she is old and tired from the process. It is a the biggest slap in the face for women to be disregarded after they make such a human sacrifice of themselves for their children. Mr. Rollins must be an embarrassment to all three of his wives, but more so to the mother of his children.

legalschnauzer said...

Very well written comment, @9:06. Thanks for sending. And you raise a great question: Why would investors think that a CEO who has been abusive to his wife and children would treat them any better?

Anonymous said...

I thought he had two wives?

Anonymous said...

It is not the abuse to the wife, it is the treating another human being as though not having the dignity of being human, in the time of knowing how not to engage in the violence against our selves, families, and all of life in earth.

Investments. Americans were and are brainwashed into thinking about how to best "handle" and/or "manage" THE INVESTMENTS.

What the lawyer class is proven to do, unfortunately they take "hostages" - the lawyers DO NOT "invest in relationship".

"LIDDY" (ELIZABETH) DOLE is going to be the next U.S. President, just watch and see the Hillary necessary TKO element for the GOP.

"... Women share with men the need for personal success, even the taste of power, and no longer are we willing to satisfy those needs through the achievement of surrogates - whether husbands, children or merely role models."

Elizabeth Dole.

I personally intend to vote for her, she is the only candidate that -- were my mother alive -- we would agree to vote for President US #45, Liddy Dole. That is a miracle I can't ignore.

Obama didn't go to Harvard except to learn how to be the GOVERNMENT MULE, that all the so-called Presidents in the US did too.

Learned how to use the USA as nothing but, a SLAVE PLANTATION.

Please look at the fact: money was and is counterfeit.

That fact negates any and all so called "legal professional", that does not address the counterfeit money in a money contract.

FRAUDCLOSURES, were an intentional destruction of the USA and the end-game was going to be a nuclear winter of sorts, to bury the stone age that happened by those that own the biggest military (past tense now), and have been at the taking of others' as Rollins was one of the perfect "Americans" for the new order of old fascist Italy.

John Roberts was and is a symbol of the "High Court" to do exactly what has been done - destroy the U.S. Constitution due process law.

Any-ALL judges, lawyers, or any-ALL top level "leader/$" not knowing we are not sovereign and at the same time charging money for the act of trading and exchanging, and this has been ongoing in the past no less than seventy-five to one-hundred-fifty years ...

PLEASE how to look at Rollins as an exact tool of perfection.

The horror that those WHO-WHOM run the American business killing machine model global, are made to order just like all the terrorists supposedly doing Paris and cartoonists.

Well-planned agendas are the Campus Crest fallen down and can't get up so the REAL INVESTORS' (GLOBALISTS), that have already done the derivatives and algorithms get to have the losses that are disaster capitalism 21 Century, too.

No clean hands in the money investments and therefore, we get what we got.

Liddy Dole is a real lawyer that ran real legitimate businesses for America, she did not get into the shadow gov. That bothered the GOP, until Hillary.

legalschnauzer said...

There was a wife before Sherry Carroll Rollins, then Sherry, now a third/current wife.

Anonymous said...

Are Teddy and Donnie next?

Read about Polycom ex-CEO and his SEC investigation....