BEACHWOOD, Ohio, April 1, 2014 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) announced that it sold 14 non-prime assets in the first
quarter for gross proceeds of $198
million, of which the Company's share was $142 million. In addition, the Company has 14
non-prime operating assets totaling $97
million, and $36 million of
non-income producing assets currently under contract which
represents $103 million of proceeds
at DDR's share. Of the operating assets sold or under
contract, 22 are small format neighborhood centers or single tenant
assets under 135,000 square feet, further reinforcing DDR's
investment thesis to own large format prime power centers in top
MSA's. The non-prime operating assets sold and under contract have
average base rents per square foot of less than $9.50, approximately 35% below the Prime average,
and feature trade area household incomes of less than $70,000, compared to the Prime average of
$81,000.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO
)
Consistent with its aggressive capital recycling plan, the
Company has reached an agreement to acquire three prime power
centers located in downtown Chicago, Northern
California, and Colorado
for an aggregate price of approximately $235
million. The three centers feature strong demographic
profiles across each trade area and average 585,000 people with
household incomes of $88,000. These
acquisitions are projected to close in the second or third quarter
subject to certain closing terms and conditions and will be funded
with proceeds from domestic dispositions and the previously
announced sale of DDR's investment in Brazil.
"We are pleased to report the continued execution of our
previously stated plan to increase disposition activity in 2014 as
a result of a favorable pricing environment for asset sales.
Our unwavering commitment to upgrading the quality of the portfolio
through prudent capital allocation and active portfolio management
is evidenced by more than 300 non-prime asset sales over the past
five years. We remain focused on redeploying the proceeds from
dispositions into high-quality prime power centers in major MSA's,
and expect to acquire several assets that meet that criteria in the
remainder of 2014," said David J.
Oakes, president and chief financial officer of DDR.
About DDR Corp.
DDR is an owner and manager of 406
value-oriented shopping centers representing 113 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, our
ability to successfully complete the previously announced proposed
sale of our 50% ownership interest in Sonae Sierra Brazil BV Sarl
to Mr. Alexander Otto and certain of
his affiliates, including entering into a binding purchase
agreement and the satisfaction of the closing conditions thereof;
local conditions such as supply of space or a reduction in demand
for real estate in the area; competition from other available
space; our ability to enter into definitive agreements and satisfy
the closing conditions for property acquisitions; 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, 2013, 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.