BEACHWOOD, Ohio, Jan. 4, 2016 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced that it closed on the acquisition of
seven prime shopping centers totaling $404
million and the disposition of 12 assets totaling
$275 million at 100% ownership during
the fourth quarter of 2015. For the full year 2015, the Company
closed on $564 million of
acquisitions and $1.0 billion of
dispositions at 100% ownership.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO )
Fourth quarter acquisition activity:
During the
fourth quarter, DDR acquired seven assets for $166 million at the Company's share. The Company
acquired Millenia Plaza, a 412,000
square foot power center anchored by Dick's Sporting Goods, BJ's
Wholesale Club, The Home Depot, Total Wine & More, and Ross
Dress For Less and located next to the Mall of Millenia in
Orlando, Florida, for $67 million. The acquisition elevates
Orlando to the Company's
6th largest market by pro rata base rent. DDR and an
affiliate of The Blackstone Group L.P. also acquired six assets,
totaling $13 million at DDR's share.
The assets are located in Long Island, Philadelphia, Miami, and Orlando. Blackstone owns 95% of the common
equity of the joint venture and an affiliate of DDR owns the
remaining 5%. DDR's stake also includes $83
million of preferred equity with an 8.5% annual return.
Fourth quarter disposition activity:
During the fourth
quarter, DDR sold nine operating assets and three non-operating
assets for an aggregate $211 million
at the Company's share. DDR has an additional 17 operating assets
and nine land parcels under contract for sale, representing total
expected volume of $247 million at
DDR's share.
Full year acquisition activity:
For the full year
2015, DDR acquired 10 shopping centers and three outparcels for
$326 million at DDR's share.
Investments in 2015 acquisitions were entirely funded by proceeds
from asset sales, with excess disposition proceeds used to reduce
leverage.
Full year disposition activity:
For the full year
2015, DDR sold 66 operating assets and eight non-operating assets
for $569 million at DDR's share.
The 29 wholly-owned and 37 joint venture assets sold averaged
126,000 square feet and 29 of the 66 assets were located outside of
the top 50 MSAs.
Luke J. Petherbridge, chief
financial officer of DDR, commented, "Our portfolio upgrade was
dramatic in 2015 as we improved our asset base by selling over
one billion dollars of lower-quality
assets into an environment of historically low cap rates. We expect
to continue to take advantage of the competitive transactional
market and will use sale proceeds to selectively acquire prime
assets and to further reduce leverage."
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.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ddr-completes-16-billion-of-transactions-in-2015-300198936.html
SOURCE DDR Corp.