Welcome!

.NET Authors: Jayaram Krishnaswamy, Elizabeth White, Sematext Blog, ITinvolve Blog, Aditya Banerjee

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
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...