BEACHWOOD, Ohio, Feb. 13, 2017 /PRNewswire/ -- DDR Corp. (NYSE:
DDR) today released guidance for 2017. The Company will
conduct a conference call and audio webcast on Tuesday, February 14, 2017, at 11 a.m. ET to discuss guidance and the related
assumptions in conjunction with its quarterly conference
call. To access the call, dial 877-249-1119 (domestic), or
412-542-4143 (international) at least 10 minutes prior to the
scheduled start of the call. The conference call webcast will be
recorded and available for replay through DDR's website at
www.ddr.com/events.
Based on 2016 results
and current market conditions, the Company is providing the
following full-year Net Income, Operating FFO and NAREIT FFO /
Share guidance for 2017:
|
Net Income Common
Shareholders / Share
|
$0.15 to
$0.17
|
FFO / Share
(Operating)
|
$1.12 to
$1.16
|
FFO / Share
(NAREIT)
|
$1.10 to
$1.14
|
The Company's 2017
Net Income, Operating FFO and NAREIT FFO guidance is based upon the
following assumptions:
|
Dispositions
|
$800 million to $1
billion at DDR's pro rata share, executed ratably throughout the
year
|
Acquisitions
|
$100
million
|
Same Store NOI
Growth
|
+1.0% to
+2.0%
|
Leased
Rate
|
+25 to +50 basis
points greater at year end 2017 compared to year end
2016
|
Redevelopment
|
$80 million
(approximately $40 million incremental to same store NOI) weighted
towards the second half of the year at high single-digit
yields
|
Fee
Income
|
$30 to $33
million
|
Interest
Income
|
$33 to $36
million
|
Interest Expense
(GAAP)
|
$175 to $190
million
|
G&A
Expense
|
$77 to $80
million
|
Annual Dividend /
Share
|
$0.76 per share
(annual)
|
Capital
Raising
|
No major capital
raises expected
|
Debt /
EBITDA
|
Approximately 1.0x
lower than the reported fourth quarter 2016 pro rata
results
|
About DDR Corp.
DDR is an owner and manager of 319
value-oriented shopping centers representing 106 million square
feet in 35 states and Puerto Rico.
The Company owns a high-quality portfolio of open-air shopping
centers in major metropolitan areas that provide a highly
compelling shopping experience and merchandise mix for retail
partners and consumers. The Company actively manages its assets
with a focus on creating 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.
Non-GAAP Measures
FFO is a supplemental non-GAAP
financial measure used as a standard in the real estate industry
and is a widely accepted measure of real estate investment trust
("REIT") performance. Management believes that both FFO and
Operating FFO (as further described below) provide additional
indicators of the financial performance of a REIT. The Company also
believes that FFO and Operating FFO more appropriately measure the
core operations of the Company and provide benchmarks to its peer
group. FFO and Operating FFO do not represent cash generated from
operating activities in accordance with GAAP, are not necessarily
indicative of cash available to fund cash needs and should not be
considered as alternatives to net income computed in accordance
with GAAP as indicators of the Company's operating performance or
as alternatives to cash flow as a measure of liquidity.
FFO is generally defined and calculated by the Company as net
income (loss), adjusted to exclude: (i) preferred share
dividends, (ii) gains and losses from disposition of depreciable
real estate property and related investments, which are presented
net of taxes, (iii) impairment charges on depreciable real estate
property and related investments and (iv) certain non-cash items.
These non-cash items principally include real property depreciation
and amortization of intangibles, equity income (loss) from joint
ventures and equity income (loss) from non-controlling interests
and adding the Company's proportionate share of FFO from its
unconsolidated joint ventures and non-controlling interests,
determined on a consistent basis. The Company's calculation of FFO
is consistent with the NAREIT definition. The Company calculates
Operating FFO by excluding certain non-operating charges and gains.
Operating FFO is useful to investors as the Company removes
non-comparable charges and gains to analyze the results of its
operations and assess performance of the core operating real estate
portfolio. Other real estate companies may calculate FFO and
Operating FFO in a different manner.
The reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure of net income is as follows ($ in
millions):
|
2017E
|
|
2017E
(Per Share –
Diluted)
|
|
Net Income Common
Shareholders
|
$54 -
$64
|
|
$0.15 -
$0.17
|
|
Depreciation and
amortization of real estate
|
330 -
335
|
|
0.90 - 0.91
|
|
Equity in net income
of JVs
|
(8) -
(9)
|
|
(0.02)
|
|
JVs' FFO
|
27 -
30
|
|
0.07-
0.08
|
|
FFO
(NAREIT)
|
403 -
420
|
|
1.10 -
1.14
|
|
Debt extinguishment
costs
|
8-9
|
|
0.02
|
|
Operating
FFO
|
$411 -
$429
|
|
$1.12 -
$1.16
|
Safe Harbor
DDR Corp. 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 supply 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; redevelopment and construction activities may not
achieve a desired return 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; the success of our deleveraging strategy; and any
impact or results from the Company's portfolio transition or any
change in 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,
2015. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
PRGR
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SOURCE DDR Corp.