BEACHWOOD, Ohio, Jan. 4, 2016 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today released guidance for 2016. The Company
will hold a conference call on Monday,
January 4, 2016 at 5:00 p.m.
ET to discuss guidance and the related assumptions. To
access the call, dial 877-249-1119 (domestic), or 412-542-4143
(international) at least ten minutes prior to the scheduled start
of the call. The conference call webcast will be recorded and
available for replay through DDR's website at
www.ddr.com/events.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO )
Based on
anticipated 2015 results and current market conditions, the Company
is providing the following full year Operating and NAREIT FFO /
Share guidance for 2016:
|
|
|
FFO / Share
(Operating)
|
$1.19 to
$1.25
|
|
|
FFO / Share
(NAREIT)
|
$1.19 to
$1.25
|
|
|
The Company's 2016
Operating and NAREIT FFO guidance is based upon the following
assumptions:
|
|
|
Dispositions
|
$600 - $800 million
at DDR's pro rata share, weighted to the first half of the
year
|
|
|
Acquisitions
|
$200 - $300 million
at a cap rate 75 – 100 basis points lower than
dispositions
|
|
|
Same Store
NOI
|
+2.5% to
+3.5%
|
|
|
Leased
Rate
|
0 to +50 basis points
greater at year end 2016 from year end 2015
|
|
|
Development and
Redevelopment
|
$190 million placed
into service at a yield of approximately 7.0%, which will primarily
be delivered during the second half of the year
|
|
|
Fee Income
|
$30 to $32
million
|
|
|
Interest
Income
|
$32 to $36
million
|
|
|
Interest Expense
(GAAP)
|
$210 to $220
million
|
|
|
G&A
Expense
|
Approximately 5% of
total revenues, including ventures at 100% share
|
|
|
Annual Dividend /
Share
|
$0.76 per share
annually, representing 10% annual growth
|
|
|
Capital
Raising
|
No major capital
raises contemplated
|
|
|
Debt /
EBITDA
|
6.4x – 6.7x,
approximately 0.5x to 0.8x lower than the most recently reported
consolidated results
|
"We are pleased to guide to another year of strong operating
results, transactional activity, and increased dividends to our
shareholders. The aggressive transactions market encourages us to
be a net seller of assets, which weighs on 2016 earnings but should
benefit DDR in the future. We continue to take a long term
view of performance and intend to position our portfolio and
balance sheet to outperform over the course of all economic
cycles," remarked David J. Oakes,
President and Chief Executive Officer.
About DDR Corp.
DDR is an owner and manager of 367 value-oriented shopping centers
representing 115 million square feet in 38 states and Puerto Rico. 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.
Non-GAAP Disclosures
FFO is a supplemental non-GAAP
financial measurement used as a standard in the real estate
industry and a widely accepted measure of real estate investment
trust ("REIT") performance. Management believes that FFO and
Operating FFO provide additional indicators of the financial
performance of a REIT. The Company also believes that FFO and
Operating FFO more appropriately measure the core operations of the
Company and provide benchmarks to its peer group. Neither FFO
nor Operating FFO represents cash generated from operating
activities in accordance with generally accepted accounting
principles ("GAAP"), is necessarily indicative of cash available to
fund cash needs and should not be considered as an alternative to
net income computed in accordance with GAAP as an indicator of the
Company's operating performance or as an alternative to cash flow
as a measure of liquidity.
FFO is defined and calculated by the Company as net income,
adjusted to exclude: (i) preferred share dividends, (ii)
gains and losses from disposition of depreciable real estate
property, which are presented net of taxes, (iii) impairment
charges on depreciable real estate property and related investments
and (iv) certain non-cash items. These non-cash items
principally include real property depreciation and amortization of
intangibles, equity income from joint ventures and equity income
from non-controlling interests and adding the Company's
proportionate share of FFO from its unconsolidated joint ventures
and non-controlling interests, determined on a consistent
basis. The Company calculates Operating FFO by excluding
certain non-operating charges and gains. The Company computes
FFO in accordance with the NAREIT definition. Other real
estate companies may calculate FFO and Operating FFO in a different
manner. Operating FFO is useful to investors as the Company
removes certain charges and gains to analyze the results of its
operations and assess performance of the core operating real estate
portfolio.
Safe Harbor
DDR Corp. 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 supply 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, 2014, 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.
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SOURCE DDR Corp.