Brixmor axes CEO and CFO over accounting allegations

Brixmor Property Group announced the resignation of its CEO, CFO and two other executives on Monday following an unfavorable audit committee review of the company's non-GAAP reporting measure. In a statement, Brixmor said the review led the board to conclude that specific accounting and financial reporting personnel were "smoothing income items, both up and down," to show consistent quarterly same property net operating income growth, an industry non-GAAP financial measure. Brixmor said it doesn't believe the amounts involved were material to financial results, and does not believe it will be required to restate historical financial results. However, the company has named Daniel Hurwitz as interim CEO, effective immediately. Shares of Brixmor were inactive in premarket trade. They have risen 6% over the last three months, versus a 10% decline for the S&P 500.

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