BEACHWOOD, Ohio, July 1, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced that it completed the acquisition of
its joint venture partner's 85% interest in five prime power
centers located in Atlanta,
Tampa and Richmond for $94
million in the second quarter of 2013. Also during the
quarter, DDR disposed of $64 million
of non-prime assets, of which $60
million was the Company's share.
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These transactions allow DDR to further enhance its portfolio
quality while also simplifying the Company's structure. The
investments were funded with proceeds from asset sales and the
issuance of common equity. DDR issued 2.5 million new common shares
during the quarter at an average price of $17.83, generating gross proceeds of $45 million. These prime power centers were
unencumbered at the time of acquisition, and will be included in
the Company's high quality unencumbered asset pool.
Second quarter acquisition activity:
The Company acquired its partner's interest in five prime power
centers located in the top 50 MSA's including The Walk at Highwoods
Preserve (Tampa, FL), Douglasville
Pavilion (Atlanta, GA),
Commonwealth Center and Chesterfield Crossing (Richmond, VA), and Jefferson Plaza (Newport News, VA). DDR has managed and leased
the centers for over six years. The 1.3 million square foot, 98%
leased portfolio is anchored by national high credit quality
retailers such as Walmart, Target, Costco, Home Depot, T.J. Maxx, Ross
Dress for Less, PetSmart, Fresh Market, and Pier One, while
small shop space comprises only 13% of total GLA. The portfolio
features an average trade area household income of approximately
$74,000 and a population of over
330,000 people.
Second quarter disposition activity:
During the quarter, DDR disposed of 11 non-prime operating
assets and 4 non-income producing assets for gross proceeds of
$64 million, of which the Company's
share was $60 million. The top three
tenants by annual base rent at these sold assets were Best Buy,
Rite Aid and JC Penney. An additional $118
million of non-prime assets are currently under contract for
sale, including $48 million of
non-income producing assets.
"Consistent with our strategic goals, these acquisitions and
dispositions increase our exposure to high credit quality tenants
located at prime power centers in major markets," said David J. Oakes, president and chief financial
officer of DDR. "This investment again demonstrates our ability to
source off-market transactions through our strong relationships
with existing joint venture partners and to fund new investments
prudently."
About DDR Corp.
DDR is an owner and manager of 445 value-oriented shopping
centers representing 116 million square feet in 39 states,
Puerto Rico and Brazil. The Company's assets are concentrated
in high barrier-to-entry markets with stable populations and high
growth potential and its portfolio is actively managed to create
long-term shareholder value. DDR is a self-administered and
self-managed REIT operating as a fully integrated real estate
company, and is publicly traded on the New York Stock Exchange
under the ticker symbol DDR. Additional information about the
Company is available at www.ddr.com, as well as on Twitter,
LinkedIn, Facebook and Pinterest.
Safe Harbor
DDR considers portions of the information in this press release
to be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, both as amended, with respect to the
Company's expectation for future periods. Although the
Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that its expectations will be
achieved. For this purpose, any statements contained herein
that are not historical fact may be deemed to be forward-looking
statements. There are a number of important factors that
could cause our results to differ materially from those indicated
by such forward-looking statements, including, among other factors,
our ability to successfully complete the proposed acquisition of
properties from the Blackstone
joint venture, local conditions such as oversupply of space or a
reduction in demand for real estate in the area; competition from
other available space; dependence on rental income from real
property; the loss of, significant downsizing of or bankruptcy of a
major tenant; constructing properties or expansions that produce a
desired yield on investment; our ability to buy or sell assets on
commercially reasonable terms; our ability to complete acquisitions
or dispositions of assets under contract; our ability to secure
equity or debt financing on commercially acceptable terms or at
all, including in connection with the proposed acquisition of
properties from the Blackstone
joint venture; our ability to enter into definitive agreements with
regard to our financing and joint venture arrangements or our
failure to satisfy conditions to the completion of these
arrangements; and the success of our capital recycling
strategy. For additional factors that could cause the results
of the Company to differ materially from those indicated in the
forward-looking statements, please refer to the Company's Form 10-K
for the year ended December 31, 2012,
as amended. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
SOURCE DDR Corp.