BEACHWOOD, Ohio, Jan. 2, 2014 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced that it continued to strengthen its
portfolio as the Company closed $1.46
billion of acquisitions and $184
million of dispositions during the fourth quarter of 2013
and a total of $2.33 billion of
acquisitions and $433 million of
dispositions in 2013.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO )
Fourth quarter acquisition activity:
As previously
announced, DDR acquired Blackstone's 95% interest in 30 open-air,
value-oriented power centers previously held in joint venture for
$1.46 billion. The 95% leased
portfolio is comprised of 11.8 million square feet and features
high credit quality tenants typically found in DDR's power centers
such as Walmart, Target, T.J. Maxx,
Kohl's, PetSmart, Bed Bath & Beyond, and Dick's Sporting Goods.
The acquisition was financed with proceeds from the issuance of new
common equity and unsecured debt in May, the repayment of preferred
equity, and assumed mortgage debt.
Fourth quarter disposition activity:
DDR disposed of
20 non-prime assets for aggregate proceeds of $184 million ($98
million at DDR's share), which exceeded previously published
guidance. 24 non-prime assets totaling an additional
$204 million ($181 million at DDR's share) are currently under
contract for sale, including $53
million of non-income producing assets ($47 million at DDR's share).
Full year acquisition activity:
DDR acquired 46 prime
shopping centers totaling over 17 million square feet with an
average size of approximately 380,000 square feet. The assets are
located primarily in the top 40 MSA's and enjoy an average trade
area population with over 480,000 people and average household
incomes of $87,000. The centers
are 95% leased and are dominated by national retailers such as
Walmart, Target, Costco, Whole Foods, T.J.
Maxx, Dick's Sporting Goods, PetSmart, and Bed Bath &
Beyond.
Investments in 2013 were funded through a combination of
proceeds from asset sales, the issuance of new common equity and
unsecured debt, preferred equity and mezzanine loan repayments, and
the assumption of existing mortgage debt. DDR issued $827 million of common equity at an average price
of $18.76 per share in 2013 to fund
the net acquisition of market dominant power centers and to further
strengthen the balance sheet.
Full year disposition activity:
DDR disposed of 80
non-prime assets for aggregate proceeds of $433 million, of which $296 million was DDR's share. The operating
assets totaled 5.9 million square feet with an average size of
approximately 95,000 square feet. The average trade area
household income was $70,000, 13%
below DDR's prime portfolio, and the average trade area population
was 211,000 people, 51% below DDR's prime portfolio.
David J. Oakes, president and
chief financial officer of DDR, commented, "The transactional
activity in 2013 demonstrates our ongoing commitment to further
upgrading the quality of the portfolio through active portfolio
management. We continued to acquire market dominant, prime
power centers in top MSA's with strong growth profiles and high
credit tenancy, while disposing of lower quality assets in weak
markets with unattractive growth profiles. The high volume of
transactions this year reflects the mispricing that we believe
exists for high quality power centers, as well as a strong capital
markets environment early in the year."
About DDR Corp.
DDR is an owner and manager of 417
value-oriented shopping centers representing 114 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 and Facebook.
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,
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; 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.