DDR Completes $127 million of Strategic Transactions in First Quarter 2013

Tue Apr 2, 2013 8:00am EDT

* Reuters is not responsible for the content in this press release.

For best results when printing this announcement, please click on the link


BEACHWOOD, Ohio,  April 2, 2013  /PRNewswire/ -- DDR Corp. (NYSE: DDR) today
announced continued execution of its strategic capital recycling program which
includes the acquisition of two prime assets for  $81 million  in  Dallas, TX,
and  Oakland, CA, the fourth and eleventh largest MSA's in  the United States,
respectively. Also during the quarter, DDR disposed of  $46 million  of
non-prime assets, including  $8 million  of non-income producing assets. The
Company's share of first quarter disposition proceeds was  $35 million. The
acquisitions were funded primarily with proceeds from asset sales as well as new
common equity. The Company accessed its at-the-market common equity program and
issued 2.3 million new common shares during the quarter at an average price of 
$17.57, generating gross proceeds of  $40 million. The properties acquired
during the quarter, which have an average trade area household income of 
$96,000  and population of 434,000 people, have been added to the Company's
large, high quality, unencumbered asset pool.

(Logo:  http://photos.prnewswire.com/prnh/20110912/CL65938LOGO  )

First quarter acquisition activity:  
DDR acquired Marketplace at  Highland Village, a 400,000 square foot prime power
center, in  Dallas, Texas  for  $40 million. Located at the intersection of
Village Parkway and Justin Road in the heart of the  Flower Mound/Highland
Village  submarket, the shopping center enjoys an average trade area household
income of over  $100,000  and population of 237,000 people, and features
Walmart,  T.J. Maxx, HomeGoods, Petco, LA Fitness, and Office Depot.  Highland
Village  is 90% leased, 85% of its revenue is generated by national retailers,
and the Company will leverage its operating platform to create additional value
through lease up as well as the recapture and downsizing of space that can be
marked to market. With this acquisition, DDR owns and manages a portfolio of six
prime power centers comprised of 1.8 million square feet in  Dallas, an MSA with
a 5.7% unemployment rate, and projections for job and population growth over the
next four years exceeding the national average.

DDR also acquired Whole Foods at Bay Place, a 57,000 square foot prime asset in
downtown  Oakland, for  $41 million. The asset features a top performing Whole
Foods operating in a densely populated high barrier-to-entry urban infill
location. Trade area demographics include an average household income of
approximately  $90,000  and population of 630,000 people. The asset provides low
risk current cash flow from a high credit tenant, consistent rent growth, and
long-term NOI enhancement potential based on the quality of the location and
future asset intensification opportunities.

First quarter disposition activity:  
During the quarter, DDR disposed of 21 non-prime operating assets and 2
non-income producing assets for gross proceeds of  $46 million, of which the
Company's share was  $35 million. An additional  $81 million  of non-prime
assets are currently under contract for sale, including  $27 million  of
non-income producing assets.

David J. Oakes, president and chief financial officer of DDR, commented,
"Despite a seasonally slow quarter for transaction activity, we are pleased to
continue to upgrade our portfolio quality by sourcing attractively priced prime
acquisitions. The new assets have increased the credit quality and long-term
growth profile of our cash flow, and our prudent funding has advanced the
improvement of our balance sheet."

About DDR  
DDR is an owner and manager of 454 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.

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.


Samir Khanal, Senior Director of Investor Relations, +1-216-755-5500

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.