BEACHWOOD, OH—DDR Corp. said Thursday it planned to spin off 50 of its shopping center properties in the US and Puerto Rico into a separate publicly traded REIT. The spin-off, which DDR says is a “significant portfolio repositioning,” is intended to concentrate the REIT's core holdings into a smaller pool with higher growth potential.
The spin-off will be known as Retail Value Trust, and will include all 12 of DDR's current holdings in Puerto Rico, along with 38 shopping centers in the continental US. Together, the properties have a book value of approximately $3.1 billion. RVT will be externally managed by DDR.
Known for the moment as New DDR, the scaled-down post-spin REIT expects to pursue a business strategy of maximizing earnings and NAV per share growth through releasing, redevelopment and opportunistic investment. It will own 93 properties with a combined book value of $6.3 billion.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
