"It really is full-speed ahead," one DDR official stressed during a conference call. CEO Scott Wolstein outlined a three-pronged approach of buying existing assets via partnerships and so-called "merchant building" initiatives, but a platform mostly reliant on new development, "where we get the highest returns and the greatest value creation." The minimum goal will be $300 million to $400 million annually, says investment chief Dan Hurwitz, waving off fears that slower consumer spending could dampen the need for new space even as yields are depressed from rising prices for land and construction materials.

Tenants "need these projects to fuel external growth," says CFO William Schafer, adding, "we seem to be developing right in their sweet spot." Hurwitz says the company has 900 meetings lined up at the upcoming International Council of Shopping Centers convention in Las Vegas, further explaining that leasing and development staffers have already approached their most desired prospects to further pitch the expanding portfolio of space, one which now encompasses more than 800 shopping centers in 45 states. Hurwitz cited the swift integration of the Inland REIT merger—encompassing 300-plus assets throughout the southeast—as evidence that the REIT can handle the ambitious growth platform. The Inland deal was completed in February, while DDR also absorbed a large portfolio of shopping centers in a partnership with TIAA-CREF.

A new joint venture was announced last week with Dividend Capital Total Realty Trust that fomented the sale of three DDR projects worth $161 million, into that vehicle. That JV is expected to close in May, levered at 68%. DDR will earn an asset management fee of 25 basis points on gross asset value, and a 4% property management fee based on gross income, Wolstein says, adding, "we expect this relationship to grow substantially over time."