Welcome!

.NET Authors: Lori MacVittie, Sandi Mappic, Ivan Antsipau, JP Morgenthal, Yeshim Deniz

News Feed Item

DDR Highlights 2012 Execution of Strategic Objectives and Provides 2013 Guidance

BEACHWOOD, Ohio, Jan. 7, 2013 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today highlighted 2012 execution of strategic objectives and released guidance for 2013. During 2012 the Company significantly improved the quality of its portfolio through the acquisition of $2.1 billion of prime shopping centers ($760 million at DDR's share) and the disposition of $347 million of non-prime operating assets ($143 million at DDR's share). Investments in 2012 were funded primarily with proceeds from asset sales and $511 million of new common equity issued throughout the year, which significantly improved the Company's balance sheet as well. DDR's considerable progress in recent years recycling capital, growing its high quality pool of unencumbered prime shopping centers, lowering leverage and extending debt duration combined with strong operating results contributed to Standard & Poor's upgrade of the Company's corporate bond rating to BBB- in September and Moody's affirming its investment grade rating on DDR bonds and raising its credit outlook to positive from stable. Additionally, DDR retired $969 million of consolidated debt with a weighted average interest rate of 4.8% during the year with $1.2 billion of new long-term financings with a weighted average interest rate of 3.8%. As a result, the Company has no unsecured debt maturities until May 2015, and 2013 consolidated debt maturities are only $41 million. At year-end, the Company had over $600 million of availability under its revolving credit facilities.

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

The Company's operating platform continued to perform at a very high level in 2012, reporting solid improvements in leased rate, which reflect robust demand and stronger competition for quality space from retailers. During the year, the Company leased approximately 11.3 million square feet, representing a 60 basis point improvement in the leased rate over year end 2011, and resulting in a 94.2% leased rate at December 31, 2012.

Daniel B. Hurwitz, chief executive officer, commented, "2012 was another year of successful execution of our strategic objectives. We have positioned the Company for future growth with attractive investments, and our primary tenants continue to increase market share and have a significant need for new stores. With a dramatically improved portfolio of high quality prime power centers, a unique and proven operating platform, and a competitive cost of capital, we expect to generate strong relative total returns in 2013 and beyond."

In 2012, the Company completed approximately $4.5 billion of capital transactions and consolidated financing activities including the following:

  • Completed $2.1 billion of acquisitions of prime shopping centers and $347 million of dispositions of non-prime operating assets. DDR's share of 2012 acquisitions was $760 million and dispositions was $143 million. In addition, the Company sold $107 million of non-income producing assets during the year, of which DDR's share was $96 million.
  • Issued $511 million of common equity to fund the net investment in prime shopping centers while also increasing our pool of unencumbered assets and improving leverage metrics.
  • Issued $200 million, 6.5% Class J preferred stock to redeem $170 million, 7.5% Class I preferred stock.
  • Issued $450 million, 10-year, 4.625% senior unsecured notes ($300 million, June 2012; and $150 million, 3.46% yield-to-maturity, November 2012), with net proceeds used to redeem $224 million, 5.375% notes maturing October 2012 and repay borrowings under the revolving credit facility.
  • Closed on $350 million unsecured term loan ($300 million, 7-year tranche, with interest fixed at 3.6% for $200 million and 3.0% for $100 million; and $50 million, 5-year tranche, with interest fixed at 2.3%), with proceeds used to retire $180 million of convertible notes, refinance a portion of our 5.0% rate mortgage debt maturing in 2013, and reduce the outstanding balances under the revolving credit facilities.
  • Closed $103 million 7-year, 3.40% mortgage loan secured by three prime shopping centers in Atlanta, GA, Princeton, NJ and San Antonio, TX.
  • Closed $265 million, 7-year, 3.95% mortgage loan secured by four prime shopping centers in San Juan, PR, Atlanta, GA, Miami, FL, and Columbus, OH. The proceeds from the loan were used to repay a majority of $350 million in 5.0% rate mortgage debt set to mature in April 2013.
  • Extended the weighted average maturity of consolidated debt from 4.3 years to 5.1 years.
  • Paid cash dividends of $0.48 per common share, an increase of 118% from 2011.

The Company also achieved the following operational accomplishments in 2012:

  • Leased approximately 11.3 million square feet of gross leasable area.
  • Increased portfolio leased rate to 94.2%, up 60 basis points from 93.6% at year-end 2011 and up 100 basis points when adjusting for the Blackstone acquisition.
  • Increased the percentage of net operating income (NOI) generated from the prime portfolio to approximately 89.3%.
  • Generated full year same store NOI growth in excess of 3%.

2013 Guidance

The Company expects to generate operating FFO per diluted share of $1.07 - $1.11 in 2013, an increase of 5% to 9% over the midpoint of the latest 2012 guidance. Significant activity assumed in this guidance is as follows:

  • Generate same store NOI growth of 2.0% - 3.0%, weighted to the second half of the year.
  • Increase year-end portfolio leased rate by 80 basis points, resulting in a leased rate of 95%.
  • Acquire $250 million of prime shopping centers.
  • Dispose of $150 million of non-prime operating assets.
  • Dispose of $50 million of non-income producing assets.
  • Bring at least $75 million of opportunistic development and redevelopment investment on line, primarily in the second half of the year.
  • Approximately $80 million in aggregate general and administrative expenses.
  • Exchange rate of 2.0 Brazilian Real per U.S. Dollar.
  • Opportunistic capital raising activity to improve liquidity, further extend debt duration and improve credit metrics.
  • Annual dividend of $0.54 per common share, representing 12.5% growth from the annual common share dividend of $0.48 per share in 2012.

About DDR

DDR is an owner and manager of 459 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, 2011, 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, will describe how to revoluti...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.