ISI Group Comments on DDR Joint-venture with Blackstone

According to ISI Group's most recent report, DDR DDR announced a joint-venture with Blackstone BX to acquire the majority of the EDT portfolio and a forward sale agreement for 15mn shares (17.25mn including shoe). ISI stated that, “The most important part of DDR's announcements in our view was the structure of the Blackstone JV which allows DDR to delever its balance sheet without diluting earnings. DDR announced a $1.43bn joint-venture with Blackstone to acquire the majority of the EDT portfolio, where DDR will attain a 5% interest and provide $150mn of preferred equity financing with a 10% coupon rate.” ISI Group reiterates its Buy rating and $14.50 price target on DDR, which is currently trading down $0.10 from yesterday's $12.87 closing price.