DDR Acquires Two Power Centers - Analyst Blog
06 April 2012 - 2:14AM
Zacks
DDR Corp. (DDR) recently announced the purchase
of 50% ownership interest in two high-quality power centers from
its joint venture partner. The two power centers; located in
Portland, Oregan and Phoenix, Arizona, respectively; were bought
for approximately $70 million.The transaction was funded through
investment proceeds generated from the offering of 4.8 million
shares.
Following the acquisition, DDR gained full control of the two
power centers, and the company managed to repay a debt of $140
million. The power centers will be integrated into the
company’s unencumbered asset portfolio.
Tanasbourne Town Center, located in Portland, Oregon, is a large
power center, spanning 566,000 square feet and is currently 97%
leased. Arrowhead Crossing, located in Phoenix, Arizona, is a power
center totaling 412,000 square feet and is currently 96%
leased.
Both the power centers enjoy high barriers to entry with
household income of over $84,000 and $73,000, respectively. The
power centers are anchored by national tenants and serve a
population of approximately 376,000 and 582,000, respectively,
within a seven-mile radius.
These acquisitions are expected to be beneficial for the company
as it enables the company to expand its portfolio of fully-owned
prime assets. Moreover, financing the acquisitions through share
offering improves the cash flow position of the company and further
strengthens the balance sheet and provides long-term value to its
shareholders
Headquartered in Beachwood, Ohio, DDR is a real estate
investment trust (REIT), which acquires, owns, develops, leases and
manages shopping centers and business centers across 39 states in
the U.S., along with Puerto Rico and Brazil.
The company has a well-diversified portfolio concentrated mostly
in the high growth areas of the country. With a focus on
best-in-class retailers in strategic locations, the portfolio
drives value and mitigates operating risks by generating a
relatively steady revenue stream.
DDR carries a Zacks #3 Rank, which translates into a short-term
Hold rating. We are also maintaining our long-term Neutral
recommendation on the stock. One of its competitors, Kimco
Realty Corporation (KIM) also retains a Zacks #3 Rank.
DDR CORP (DDR): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Developers Realty (NYSE:DDR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Developers Realty (NYSE:DDR)
Historical Stock Chart
From Jul 2023 to Jul 2024