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.
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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.
SOURCE DDR Corp.