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Joseph Scime
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My goal is to combine 20 years of investor relations, investment banking, capital markets and C-level experience to uncover opportunities for greater market capitalization and long term shareholder growth
My company:
Ask The IRO
My blog:
Ask The IRO
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  • REITS - Developers Diversified Realty (DDR)

    REITS

    Developers Diversified Realty (NYSE:DDR)

     

    When other real estate developers are stagnant, Developers Diversified Realty is growing. DDR is demolishing two shopping malls in TX and CO to allow for construction on two new stores for Target.

     

    In June 2011 DDR declared 2nd Q Preferred Share Dividends. REIT Retail has been down; however the strong player DDR has had a 52 week change in stock value - up 18.1%.

     

    Analyst Opinions:

    Mean target price $15.42, high target $17.00 and a low target of $14.00.

    DDR has upside potential as the company is trading at the low end of the $14 target range.  Also, DDR has a tight spread between the Bid and the Ask. Some recent profit taking may be slowing the stock temporarily to reach a mean to high target of $15.42 - $17.00.

    Long term value looks good as the market rallies with DDR’s Beta of 2.86.

     

    Risks Metrics Corporate Governance Risks Indicator

    Board (low risk)

    Audit (low risk)

    Shareholder Rights (low risk)

    Compensation (medium risk)

     

    Of Note:

    DDR has made acquisitions totaling over $100M over the last three quarters.

    Moody’s, S&P, and Fitch upgraded DDR’s stock in a down commercial real-estate market.

    Executive compensation is tied to same store EBITDA.

    Separate and Independent roles for the Chairmen and CEO.

    Vacancy rates are down.

    Same store NOI are up.

    Strong portfolio mix.

    Strong tenant company profiles (all the big name retailers).




    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Jun 20 9:12 PM | Link | Comment!
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