BEACHWOOD, Ohio, June 30, 2011 /PRNewswire/ -- Developers
Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today
that it completed $112 million of
asset sales during the second quarter of 2011, of which the
Company's share was $87 million.
Sales during the quarter included 12 assets, primarily non-prime,
and four land parcels. The non-prime assets were predominantly
located in tertiary markets with below average demographics. An
additional $94 million of non-prime
or non-income producing assets are currently under contract for
sale, of which the Company's share is $93
million. The Company also announced that it is under
contract to acquire two prime shopping centers for approximately
$85 million, and currently expects to
close these acquisitions in the third quarter of 2011.
Year to date, the Company has generated gross proceeds of
$155 million from asset sales, of
which the Company's share is $107
million. The Company anticipates that the proceeds from
recent and future asset sales will be redeployed into acquisitions
of prime shopping centers.
David Oakes, DDR's Chief
Financial Officer, commented, "We are pleased with our progress on
asset sales, which continue to strengthen our balance sheet. The
Company's exposure to non-prime assets has been significantly
reduced, and we are encouraged by the recent land sales. Investing
capital from these transactions in the acquisition of prime
shopping centers, with strong long-term growth prospects, will
create future shareholder value, and we expect to continue to make
progress in this area without the need for new common equity."
Daniel B. Hurwitz, DDR's
President and Chief Executive Officer, stated, "Strategic asset
sales continue to contribute significantly to enhancing our overall
portfolio quality. Our prime assets are approximately 94% leased,
represent over 87% of our total net operating income, average over
300,000 square feet of GLA per property, and enjoy average
household incomes of $78,000 and
conservatively defined trade areas with an average population of
335,000 people. The vast majority of our major tenants continue to
prosper, pursue growth through new locations and we expect our
leasing numbers to continue to reflect this momentum."
About DDR
DDR owns and manages approximately 520 retail properties in 41
states, Puerto Rico and
Brazil totaling approximately 127
million square feet. The Company's prime portfolio primarily
features open-air, value-oriented shopping centers in high
barrier-to-entry markets with stable populations and high growth
potential. DDR is the largest landlord in Puerto Rico and owns a premier portfolio of
regional malls primarily clustered around Sao Paulo, Brazil. DDR is a self-administered
and self-managed REIT operating as a fully integrated real estate
company. Additional information about DDR is available on the
Company's website at www.ddr.com.
SOURCE Developers Diversified Realty Corporation