DOW JONES NEWSWIRES
Developers Diversified Realty (DDR) declared a first-quarter
dividend of 20 cents, but the debt-laden shopping center owner will
make no more than 10% of the payment in cash.
The nation's largest shopping center owner has been struggling
under the weight of acquisitions, and in recent months has been
looking to pare down its borrowings.
In October, the company, which did not pay a fourth-quarter
dividend, estimated 2009 dividend payments would total $1.50. The
changes at the time were expected to result in additional free cash
flow of about $230 million.
Developers Diversified said shareholders can elect to receive
their dividend in all cash or all common shares, in accordance with
the Internal Revenue Service's guidance. However, the company said
that if more than 10% cash is elected by all shareholders in the
aggregate, then the cash portion will be prorated.
Last week, the company reported it swung to a steep
fourth-quarter loss on charges related to investments, write-downs
and abandoned projects. Real-estate investment trusts have been
slammed by the global recession as the housing market continues to
drop because of tight credit, high foreclosure rates and rising
unemployment.
Shares were even in after-hours trading at $2.34, after closing
down 21% amid a broad decline.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com