The new year brings some good news from DDR Corp., which reported its results including a lot of buying and selling, its highest leased percentage in five years—and, yes, new development.
Not unlike other REITs, including Kimco, the company has been disposing of non-core assets. Last year, it completed the sale of $433 million in properties, while acquiring $2.33 billion in projects in tune with its strategy. Among them was the acquisition of the remaining 95 percent interest in 30 power centers in its joint venture with Blackstone last spring.
Meanwhile, the portfolio is now 95.1% leased, its highest level since 2008, and includes such in-demand tenants as Nordstrom Rack, Whole Foods and Five Below in its top 50 tenants. The last will be one of the anchors for Seabrook Commons, a new power center to open in Seabrook, N.H. this summer. So development also is taking place.
In the announcement, CEO Daniel B. Hurwitz noted, "We are extremely pleased with the continued progress made toward achieving our stated strategic objectives. Our operating platform, once again, produced at a very high level and allowed for robust earnings growth over the prior year, and our transactional and redevelopment activity continued to upgrade the quality of the portfolio."
Unlike other companies, though, DDR continues to own projects in South America. So even globalization is working for them.
Plans for 2014 call for $250 million in acquisitions, disposition of $230 million in non-prime and non-income-producing assets, and at least $100 million in development and redevelopment. Certainly sounds do-able based on last year's results.
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