Welcome!

Microsoft Cloud Authors: Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White, 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.

IoT & Smart Cities Stories
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in development and launches of disruptive technologies to create new market opportunities as well as enhance enterprise product portfolios with emerging technologies. His most recent venture was Octoblu, a cross-protocol Internet of Things (IoT) mesh network platform, acquired by Citrix. Prior to co-founding Octoblu, Chris was founder of Nodester, an open-source Node.JS PaaS which was acquired by AppFog and ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...