Seeking Alpha

DDR Corp. (DDR)

  • Wed, Apr. 1, 8:20 AM
    • DDR Corp. (NYSE:DDR) closed on the purchase of one shopping center for $49M, and the sale of 31 assets for $353M in Q1. DDR's share of the sales was $153M.
    • CFO Luke Petherbridge: "The current pricing environment has allowed us to continue to accelerate our portfolio transformation," and the company expects sales to exceed purchases in H1. Given the aggressive demand environment, DDR is considering the sale of additional assets sooner than previously expected.
    • Source: Press Release
    | Wed, Apr. 1, 8:20 AM | Comment!
  • Tue, Mar. 24, 10:21 AM
    • Started at Outperform are Agree Realty (ADC +0.4%), DDR (DDR -0.7%), Excel Trust (EXL +0.1%), Kite Realty (KRG), Retail Opportunity Investments (ROIC -0.3%), and Store Capital (STOR +0.9%).
    • Initiated at Neutral are Kimco (KIM -0.3%), National Retail Properties (NNN -0.3%), Ramco-Gershenshon (RPT -0.3%), Realty Income (O -0.5%), Regency Centers (REG -0.2%), and Spirit Realty (SRC -0.7%).
    | Tue, Mar. 24, 10:21 AM | Comment!
  • Wed, Mar. 18, 3:28 PM
    • The Fed earlier cuts its forecasts for GDP growth, inflation, and the pace of rate hikes. Alongside, it also lowered NAIRU - the level at which unemployment threatens accelerating inflation.
    • The 10-year Treasury yield is lower by 13 basis points to 1.92% following the news, sending the board averages to near-1.5% gains, but the strongest names are the equity REITs.
    • IYR +2.3%
    • National Retail Properties (NNN +3%), Spirit Realty (SRC +3.1%), Senior Housing Properties (SNH +2.1%), Healthcare Trust of America (HTA +2.9%), Equity Commonwealth (EQC +2.7%), Gramercy Property (GPT +3.2%), Post Properties (PPS +3.9%), Aimco (AIV +2.6%), Kimco (KIM +2.8%), DDR Corp (DDR +2.4%), Public Storage (PSA +2%), Government Properties (GOV +1.9%), First Potomac Realty (FPO +3%), Digital Realty Trust (DLR +1.5%), Sunstone Hotel (SHO +2%), Liberty Property (LPT +2.4%), American Campus (ACC +2.5%)
    • Previously: Day's biggest news: Fed sharply cuts "normal" unemployment rate (March 18)
    • Previously: FOMC drops "patient," but sends dovish signal (March 18)
    | Wed, Mar. 18, 3:28 PM | Comment!
  • Fri, Mar. 6, 10:31 AM
    • Equity REITs are facing some competition as the 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • The iShares U.S. Real Estate ETF (IYR -2.3%).
    • Realty Income (O -3.7%), National Retail Properties (NNN -3.9%), Agree Realty (ADC -3.1%), Omega Heathcare (OHI -4.5%), Health Care REIT (HCN -3.5%), Ventas(VTR -3.7%), HCP (HCP -3.6%), Medical Properties (MPW -4%), Healthcare Trust (HTA -4%), AvalonBay (AVB -2.7%), Essex Property (ESS -2.3%), Simon Property (SPG -2.3%), General Growth (GGP -2.2%), Kimco (KIM -2.9%), Inland Real Estate (IRC -2.9%), DDR (DDR -2.7%), Federal Realty Investment (FRT -2.6%), Public Storage (PSA -2%), Sovran Self Storage (SSS -2.7%), Boston Properties (BXP -2.8%), First Potomac (FPO -3.2%), Digital Realty Trust (DLR -1.9%), Hospitality Properties (HT -2.1%), Ashford (AHT -2.7%), STAG Industrial (STAG -3%), American Campus (ACC -2.9%).
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
    | Fri, Mar. 6, 10:31 AM | 62 Comments
  • Mon, Mar. 2, 9:14 AM
    • Luke Petherbridge has been promoted to the CFO spot at DDR, replacing David Oakes who earlier this month was promoted to CEO.
    • Petherbridge joined DDR as SVP of capital markets late in 2011, and most recently was ECP of capita markets and treasurer.
    • Source: Press Release
    | Mon, Mar. 2, 9:14 AM | Comment!
  • Wed, Feb. 11, 5:04 PM
    • DDR (NYSE:DDR): Q4 FFO of $0.31 in-line.
    • Revenue of $248.56M (+6.8% Y/Y) misses by $2.27M.
    • Press Release
    | Wed, Feb. 11, 5:04 PM | Comment!
  • Wed, Feb. 11, 9:10 AM
    • David Oakes has been CFO since 2010, and has also served as CIO since 2007. He's been promoted to the role of CEO and board member, effective immediately.
    • Roughly six months ago, DDR signaled then-CEO Daniel Hurwitz was out as of the end of 2015, and the two later agreed to part ways at the start of this year.
    • Source: Press Release
    • Previously: DDR's Hurwitz no longer CEO or director (Jan. 2)
    | Wed, Feb. 11, 9:10 AM | Comment!
  • Tue, Feb. 10, 5:35 PM
  • Wed, Feb. 4, 3:21 PM
    • About 14% of DDR's net operating income comes from 15 Puerto Rican shopping centers, says Morgan Stanley as the team there picks just the right time to take a tour. What they found were strong cash flows and tenant demand, and a mix of mostly U.S.-based retailers. Looking at a price chart of DDR (upward and to the right), it's hard to see any Puerto Rican exposure fear priced in, but nevertheless, the team thinks current levels are a nice entry point into the shares.
    • They're not as impressed with Taubman Centers' (NYSE:TCO) island assets, noting they've run over-budget and have had leasing issues. Miami is a different story, however, and Morgan thinks Taubman's WorldCenter properties will be a success despite competition from Brickell City Center just two miles away.
    | Wed, Feb. 4, 3:21 PM | Comment!
  • Wed, Jan. 21, 10:08 AM
    • Upgraded to Outperform from Neutral: Ashford Trust (AHT +1.1%), Camden Property Trust (CPT +0.1%), DDR (DDR +0.4%), Eastgroup Properties (EGP +0.3%), Host Hotels (HST -0.1%), Strategic Hotels (BEE +0.3%).
    • Upgraded to Neutral from Underperform: Kilroy Realty (KRC +0.4%).
    • Downgraded to Underperform from Neutral: Equity One (EQY -0.4%), Macerich (MAC -0.3%), Vornado Realty (VNO -0.7%).
    • Downgraded to Neutral from Outperform: Kimco Realty (KIM -0.5%).
    | Wed, Jan. 21, 10:08 AM | Comment!
  • Thu, Jan. 15, 9:39 AM
    • Now an Overweight from Neutral are shopping-center operator Kimco (KIM +0.7%) and DCT Industrial Trust (DCT +0.8%), and boosted to Neutral from Underweight is D.C.-area property owner Washington Real Estate (WRE +1.1%).
    • Downgraded to Neutral from Overweight after nice runs higher are DDR (DDR -0.2%) and STAG Industrial (STAG -1.5%).
    | Thu, Jan. 15, 9:39 AM | Comment!
  • Mon, Jan. 12, 10:41 AM
    • "We certainly expect more malls to close than open over the next several years," says D.J. Busch, a mall-REIT analyst at Green Street Advisors. Those regional malls with low per-square-foot tenant sales that have lost relevance probably will be closed or reused for something other than retail over the next few years.
    • Morgan Stanley real estate debt analyst Richard Hill: “There’s a level of complacency among investors ... Competitive pressures that haven’t been seen in decades are making some retailers and some properties obsolete.”
    | Mon, Jan. 12, 10:41 AM | 6 Comments
  • Wed, Jan. 7, 8:14 AM
    • Operating FFO per share of $1.20-$1.25 is expected for 2015, with same-store NOI up 2.5-3%, and the leased rate up 25-50 basis points. Both acquisitions and dispositions are expected at $250M.
    • Capital raising will be opportunistic to extend debt duration and improve credit metrics. "We expect another year of self-funded growth," says DDR President and CFO David Oakes.
    • Source: Press Release
    • Previously: Busy Q4 for DDR; dividend hiked 11% (Jan. 6)
    | Wed, Jan. 7, 8:14 AM | Comment!
  • Tue, Jan. 6, 8:17 AM
    • DDR disposed of 41 non-prime operating assets and seven land parcels in Q4 for a total of $258M. Another six non-prime assets are under agreement for sale, representing another $63M.
    • For the year, DDR sold 82 non-prime assets and 16 land parcels for $1.21B.
    • Acquisitions: As previously announced, a JV of DDR and an affiliate of Blackstone purchased 70 shopping centers formerly owned by American Realty Capital for $376M in Q4. DDR acquired another prime power center for $15M in Q4 as well.
    • Source: Press Release
    • Last night the company announced an 11% increase in the quarterly dividend to $0.1725 per share for an annualized yield of 3.7%.
    | Tue, Jan. 6, 8:17 AM | Comment!
  • Fri, Jan. 2, 8:09 AM
    • Four months ago, DDR announced CEO Daniel Hurwitz's employment contract would not be renewed past its end of 2015 expiration date.
    • The two have finalized their separation, with Hurwitz out as CEO and board member, effective the end of 2014. Hurwitz will stay with the company until Feb. 14.
    • Source: Press Release
    • Previously: DDR chief to exit at end of 2015 (Sept. 11, 2014)
    | Fri, Jan. 2, 8:09 AM | Comment!
  • Dec. 31, 2014, 9:43 AM
    • The push by large-format stores to downsize gives growing retail chains an easy path to accelerate growth.
    • ICSC notes the trend of real estate managers such as DDR Corporation (NYSE:DDR) to remerchandise high-quality space before lease expiration could increase even more in 2015.
    • What to watch: Nordstrom Rack (NYSE:JWN), Trader Joe's, Sprouts Farmers Market (NASDAQ:SFM) Dick's Sporting Goods (NYSE:DKS), and Whole Foods Market (NASDAQ:WFM) are expected to continue utilizing sub-leases or reworked leases to add outlets. Fast-fashion retailers Hennes & Mauritz (OTCPK:HMRZF), Fast Retailing (OTCPK:FRCOY), and Inditex (OTCPK:IDEXY) might also take advantage of the trend as they look to increase their brick-and-mortar U.S. presence.
    • Previously: Big box retailers expected to follow sub-leasing strategy (Dec. 30 2014)
    | Dec. 31, 2014, 9:43 AM | Comment!
Company Description
DDR Corp is a self-administered and self-managed REIT operating as a fully integrated real estate company. It owns and manages approximately 413 value-oriented shopping centers representing 118.1 million square feet in 41 states and Puerto Rico.
Sector: Financial
Industry: REIT - Retail
Country: United States