DDR Restructures Portfolio - Analyst Blog
October 07 2011 - 12:01PM
Zacks
DDR Corp. (DDR) recently announced that it
has acquired three prime shopping centers for $110
million. Among the acquired properties, two prime assets are
located in Charlotte, North Carolina, Cotswold Village and The
Terraces at South Park and are worth $85 million while the
other asset is located in Colorado and worth $25 million.
In connection with these acquisitions, DDR assumed three
existing mortgage loans for $50.8 million, $6.6 million and $9.6
million, respectively. The assets are occupied by high quality
retailers spanning 500,000 square feet.
With this strategic move, DDR expanded its presence in the
Charlotte trade area to 9 prime assets spanning 2.2 million square
feet as well as in the Denver area to 9 prime assets totaling 2.8
million square feet.
In order to further enhance its portfolio, DDR is also under
contract to acquire a 700,000 square feet asset named Polaris Towne
Center in Columbus, Ohio, for $80 million. The company
expects to close the transaction by the fourth quarter of 2011.
The company disposed
of 10 non-prime assets and 7 land parcels
during the third quarter for approximately
$59 million. An additional $209 million of assets
are currently under contract for sale, of which the company's share
is $196 million.
The company is currently undertaking a portfolio repositioning
strategy under which it intends to dispose the non-core assets and
funds the acquisitions with the disposition proceeds thereby
enhancing the quality of its portfolio.
DDR Corp. operates as a real estate investment trust (REIT) in
the United States. The company engages in acquiring, developing,
redeveloping, owning, leasing, and managing shopping centers,
mini-malls, and lifestyle centers.
DDR Corp. currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on the stock. One of its
competitors, BRT Realty Trust (BRT) currently
retains a Zacks #1 Rank, which translates into a Strong Buy
rating.
BRT REALTY TRST (BRT): Free Stock Analysis Report
DDR CORP (DDR): Free Stock Analysis Report
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