BEACHWOOD, Ohio, Jan. 10, 2012 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced a review of 2011 accomplishments as
well as its guidance for 2012.
(Logo: http://photos.prnewswire.com/prnh/20110912/CL65938LOGO
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The Company continued to aggressively pursue its long-term
strategic objectives during 2011 and made significant progress in
upgrading the quality of its shopping center portfolio through its
capital recycling efforts, while improving its balance sheet by
reducing leverage and extending debt duration. DDR's plans for 2012
are focused on continued growth in net asset value with further
balance sheet, portfolio and FFO per share improvement.
Daniel B. Hurwitz, president and
chief executive officer, commented, "We are very pleased to report
another year of significant progress achieving the objectives of
our long-term strategic plan, and we are encouraged by the
prospects for 2012 and beyond. We remain focused on enhancing our
relationships with the industry's most successful retailers, and
providing industry-leading transparency and candor to the
investment community."
Consistent with the Company's 2011 achievements and future
prospects, DDR's Board of Directors recently approved a 50%
increase in the quarterly common share dividend to $0.12 per share.
In 2011, the Company completed approximately $2.8 billion of capital transactions and
financing activities including the following:
- Completed the initial public offering of Sonae Sierra Brasil (SSB) which generated gross
proceeds of approximately $280
million. The IPO raised the capital necessary to fund SSB's
identified development and expansion pipeline.
- Sold 9.5 million of its common shares in a public offering
generating net proceeds of approximately $130 million. The net proceeds, plus $60 million from the cash exercise of warrants to
purchase the Company's common shares by Mr. Alexander Otto and certain members of his
family, were used to redeem $180
million of the Company's 8% Class G Preferred Shares.
- Issued $300 million of 4.75%,
seven-year unsecured notes.
- Refinanced a $550 million senior
secured term loan that was scheduled to mature in February 2012 with a new $500 million senior secured term loan. The new
term loan has a final maturity of September
2015, and pricing is set at LIBOR plus 170 basis
points.
- Amended its two senior unsecured revolving credit facilities,
including the extension of the term of each to February 2016. The pricing on both revolving
credit facilities was reduced to LIBOR plus 165 basis points, a
decrease of 110 basis points from the previous rate.
- Completed $270 million of
acquisitions of prime shopping centers and $461 million of asset dispositions. DDR's share
of 2011 acquisitions was $230
million. DDR's share of 2011 dispositions was $371 million, including the sale of $57 million of non-income producing assets.
- Reduced consolidated debt from $4.3
billion to $4.1 billion, and
extended the weighted average maturity of consolidated debt from
3.9 years to 4.3 years.
- Paid cash dividends of $0.22 per
common share, an increase of 175% from 2010.
The Company also achieved the following operational
accomplishments in 2011:
- Leased approximately 11.7 million square feet of gross leasable
area.
- Increased core portfolio leased rate to 93.6%, up 100 basis
points from 92.6% at year-end 2010.
- Increased total portfolio average annualized base rent per
occupied square foot by approximately 3.4%.
- Increased the percentage of net operating income (NOI)
generated from the prime portfolio to approximately 89%.
- Increased total portfolio ancillary income by approximately 24%
in 2011 to approximately $54
million.
- Generated annual same store NOI growth in excess of 3%.
2012 Guidance
The Company expects to generate operating FFO per diluted
share of $0.98 - $1.04 in 2012.
Significant activity assumed in this guidance is as
follows:
- As announced today, the acquisition and associated funding of
the $1.43 billion portfolio of 46
shopping centers currently owned by EPN Group (the "EDT Retail
Portfolio") in a joint venture with a real estate fund managed by
Blackstone. The Company expects to own a 5% common equity interest
in the venture, invest $150 million
of preferred equity, and continue to provide management and leasing
services to the partnership.
- Refinance maturing unsecured bonds with new long-term unsecured
debt, including a new unsecured term loan of at least $200 million expected to close in the first
quarter.
- Refinance maturing mortgage debt with new long-term secured
debt, including a new seven-year mortgage loan of at least
$100 million expected to close in the
first quarter, which will pre-fund future maturities on assets
which will be unencumbered.
- Dispose of $100 million of
non-prime assets with net proceeds invested in the acquisition of
prime shopping centers.
- Opportunistic capital raising activity to improve liquidity,
further extend debt duration and improve credit metrics.
- Same store NOI growth of 2.0% - 3.0% with growth
disproportionately weighted toward the second half of the year due
to the timing of 2011 move-outs and 2012 rent commencements.
- Year-end core portfolio leased rate increasing by 100 basis
points, resulting in a leased rate above 94.5%.
- Approximately $77 million in
aggregate general and administrative expenses.
- Annual common share dividend of $0.48 per share.
About DDR
DDR is an owner and manager of 538 value-oriented shopping
centers representing 134 million square feet in 41 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, the
ability of the joint venture between affiliates of the Company and
Blackstone to successfully complete the acquisition of the EDT
Retail Portfolio; 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, 2010. 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.