DDR Had A Busy 2014
The company continues to undergo a transformation by refocusing its portfolio on prime retail power centers primarily located in 20 top growth markets, while shedding smaller centers and centers located in less desirable markets. During 2014, DDR disposed of $1.63 billion in properties including the remainder of its former investments in Brazil. DDR acquired $2.64 billion of targeted assets during 2014. The acquisitions included a JV with The Blackstone Group L.P. BX to acquire 71 multi-tenant centers formerly owned by American Realty Capital Properties Inc ARCP, which closed in October 2014.DDR C-Suite Shake-Up
This is especially true given that Daniel Hurwitz, the DDR board and 15 year veteran CEO, announced a parting of the ways September 11, 2014. DDR shares were immediately downgraded by some analysts on the news, while notably MLV & Co. reaffirmed its Buy rating and $20 PT for the stock. The company is currently being led by President and CFO David Oates. DDR shares are up just over 19 percent since the announcement last September.5 Quick Slides Tell The DDR Story
DDR has a laser focus on power centers. During 2015, DDR has guided that it will be far less active in transforming the portfolio, with only $250 million of acquisitions planned to be self-funded through recycling capital from dispositions. A smaller, higher quality portfolio with greater occupancy and higher rents, located in growing trade areas with strong demographics. Power center anchors that the consumer prefers also have strong credit metrics. Top DDR tenants by base rent: TJX Companies, Wal-Mart Stores, Bed Bath & Beyond,Investor Takeaway
DDR Corp. has come a long way in a relatively short period of time after the company was forced to severely cut its dividend in the depths of the Great Recession. The DDR prime power center formula appears to be working -- supported by both U.S. retail trends and increased consumer spending. Another DDR plus is its relationship with Blackstone Group. The ability to invest in JV's alongside the largest publicly traded private equity firm may be hard to quantify moving forward. However, at the very least, it is an endorsement of the DDR platform by one of the world's premier real estate investors.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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