BEACHWOOD, Ohio, April 4, 2012 /PRNewswire/ -- DDR Corp. (NYSE:
DDR) today announced that it has acquired its joint venture
partner's 50% ownership interest in two high quality prime power
centers located in Portland,
Oregon and Phoenix, Arizona
for $70 million. The Company funded
its entire $70 million investment
with proceeds from the issuance of 4.8 million common shares
through its at-the-market common equity program. At closing,
$104 million of mortgage debt was
repaid, and these prime shopping centers are now wholly owned by
DDR and part of the Company's large and growing unencumbered asset
pool.
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Daniel B. Hurwitz, president and
chief executive officer of DDR, commented, "This transaction is
another example of our continued effort to creatively
source transactions that allow us to grow our prime portfolio
while improving our balance sheet and simplifying our story.
Furthermore, our knowledge and familiarity of the assets reduces
risk and give us confidence in the long-term growth profile of each
property."
Tanasbourne Town Center, located in Portland, Oregon, is a large-format power
center totaling 566,000 square feet and is currently 97% leased. It
benefits from a strong credit tenant lineup, enjoys significant
barriers to entry and has household incomes of over $84,000 and a population of 376,000 within a
seven mile radius. The shopping center is anchored by national
tenants such as Target, Nordstrom
Rack, Bed Bath & Beyond, Ross Dress For Less, Michaels,
Old Navy and Petco. DDR has managed and leased the center since
1996.
Arrowhead Crossing, located in Phoenix, Arizona, is a large-format power
center totaling 412,000 square feet and is currently 96% leased.
The shopping center is anchored by national tenants such as
Nordstrom Rack, DSW, T.J.Maxx, HomeGoods, Staples and Hobby Lobby.
This prime asset enjoys strong barriers to entry and has household
incomes over $73,000 and a population
of 582,000 within a seven mile radius. DDR has managed and leased
the center since 1996.
David J. Oakes, chief financial
officer of DDR, commented, "Financing attractively priced prime
acquisitions with equity proceeds allows us to grow our portfolio
of wholly owned prime assets in our unencumbered pool while
continuing to improve our cash flow, maturity profile and fixed
charge coverage."
About DDR
DDR is an owner and manager of 481 value-oriented shopping
centers representing 123 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 renew or enter into new leases at
favorable rates; our ability to buy or sell assets on commercially
reasonable terms; our ability to complete acquisitions or
dispositions of assets under contract, including the properties in
the EDT Retail Portfolio; 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, 2011. 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.