DDR Completes $731 Million of Strategic Transactions in 2011
BEACHWOOD, Ohio, Jan. 4, 2012 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that it acquired a strategic shopping center for $80 million and disposed of $247 million of assets during the fourth quarter of 2011. DDR continues to focus on quality enhancement by recycling capital generated from non-prime and non-income producing asset sales into the acquisition of prime shopping centers.
For the full year 2011, the Company completed $270 million of acquisitions and $461 million of dispositions. DDR's share of 2011 acquisitions was $230 million. DDR's share of 2011 dispositions was $371 million, including the sale of $57 million of non-income producing assets.
Fourth quarter acquisition activity:
As previously announced, DDR acquired Polaris Towne Center in Columbus, Ohio, a 700,000 square foot prime shopping center anchored by Target (TGT), Lowe's, Kroger, Best Buy and T.J. Maxx, for $80 million. The inclusion of Polaris Towne Center in the portfolio solidifies DDR's position as the major owner and operator of prime shopping centers in the Columbus MSA. DDR's Columbus portfolio consists of seven prime shopping centers comprised of 2.3 million square feet that are currently 99% leased.
Fourth quarter disposition activity:
During the quarter, the Company disposed of 20 shopping centers and seven land parcels for aggregate proceeds of $247 million, of which DDR's share was $205 million. An additional $89 million of assets are currently under contract for sale, of which the Company's share is $82 million.
Over the last two years, DDR has disposed of 62 consolidated non-prime assets comprised of 5.3 million square feet located primarily in tertiary markets. The top three tenants generating base rent in the properties sold were Rite Aid, BI-LO and Kmart. Since 2007, DDR has completed $2.6 billion of dispositions of primarily non-prime assets.
Daniel B. Hurwitz, president and chief executive officer of DDR, commented, "The execution of our strategic capital recycling program continues to significantly strengthen the quality of the portfolio from a demographic, credit quality of cash flow and overall trade area perspective. Viewing the market opportunistically throughout 2011 enabled both acquisition and disposition volume to significantly exceed our guidance for the year, and we are confident these efforts will create long-term value for our shareholders."
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, 2010. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
DDR is an owner and manager of 538 value-oriented shopping centers representing 134 million square feet in 41 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.
SOURCE DDR Corp.