DDR Completes $402 Million of Transactions in the First Quarter 2015
BEACHWOOD, Ohio, April 1, 2015 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that it closed on the acquisition of one shopping center valued at $49 million and the disposition of 31 assets totaling $353 million at 100% ownership, or $153 million at the Company's share, during the first quarter of 2015.
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Included in the total transactional activity for the quarter is the final dissolution of the Company's joint venture with Coventry Real Estate Advisors ("Coventry"). DDR transferred to Coventry its 20% interest in 21 of the joint venture's remaining 22-asset portfolio, valued at $49 million at the Company's share, and concurrently eliminated the Company's $36 million of pro rata joint venture debt. DDR had no GAAP economic interest in 18 of the 22 assets at the time of dissolution. In exchange for its interest in the portfolio, Coventry transferred to DDR its 80% interest in Buena Park Place, a 223,000-square-foot power center located in Orange County, California, valued at $39 million, and concurrently retired $26 million of debt that was secured by the asset. In accordance with the transaction, all charges in the associated lawsuits have been dismissed.
In addition to the dissolution of DDR's former joint venture with Coventry, the Company also sold 10 assets totaling $104 million at the Company's share. DDR is under contract to sell an additional seven assets totaling $80 million at the Company's share.
Luke J. Petherbridge, chief financial officer of DDR, commented, "We are pleased to report another strong quarter of transactional activity that included a high-quality acquisition in a top MSA, the sale of another 31 lower-quality assets, and the wind down of our 15th joint venture in the last four years. The current pricing environment has allowed us to continue to accelerate our portfolio transformation, and given the robust demand for shopping centers, we expect our disposition activity to exceed our acquisition activity in the first half of 2015. To capitalize on this trend, we are actively reviewing additional assets for sale sooner than previously expected."
About DDR Corp.
DDR is an owner and manager of 407 value-oriented shopping centers representing 117 million square feet in 41 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.
SOURCE DDR Corp.
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