DDR Ddr Corp.

As part of the strategic move to better mirror the simplified operating metrics of the company, which focus primarily on open-air, value-oriented shopping centers, Developers Diversified Realty Corporation (DDR), a real estate investment trust (REIT), has recently initiated a new re-branding project.

Moving forward, the company has rechristened itself as DDR Corp., in line with its ticker symbol on the New York Stock Exchange as the official brand name. The company has also changed its logo, tagline and brand identity.

The new name is intended to better reflect the simplified strategy, portfolio and capital structure of the company. The words 'developers' and 'diversified' in the erstwhile corporate name was deemed to have lost its primary significance, as ground-up development of new shopping centers, while still being a part of the business, was no longer the mainstay for the company.

The company has long been minimizing ground-up development spending in its domestic portfolio, and instead started allocating capital to the lease-up of existing projects. These redevelopments should create a growth opportunity for the company’s existing assets and create future value without the level of risk or capital required for new development. Furthermore, DDR Corp. presently focuses more on open-air, value-oriented shopping centers, thereby making the word 'diversified' an inaccurate representation of its corporate identity.

The new tagline – "Think Retail. Create Value." – is aimed at emphasizing to both tenants and employees that the retailers are the company's primary focus. It is also expected to serve as a constant reminder to its investors that the company is resolute in its endeavor to create long-term value for its shareholders.

Headquartered in Beachwood, Ohio, DDR Cop. acquires, owns, develops, leases and manages shopping centers and business centers across 41 states in the U.S., along with Puerto Rico and Brazil. At the end of second quarter 2011, DDR Corp. owned and managed 546 retail operating (primarily open-air, value-oriented shopping centers) and development properties spanning approximately 126 million square feet.

We maintain our ‘Neutral’ recommendation on DDR Corp. for the long term. The company presently has a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation and  a Zacks #3 Rank for Kimco Realty Corporation (KIM), one of the competitors of DDR Corp.

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