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DDR On 2016 Disposition Track With $58M Transactions In Q2

ByZacks Investment Research
Published 07/05/2016, 09:42 PM
Updated 07/09/2023, 06:31 AM

DDR Corp. (NYSE:DDR) revealed transactions worth $58 million in second-quarter 2016. This included the disposition of six assets which were at its full ownership as the company did not close any acquisition during the quarter.

Specifically, the dispositions included three operating assets that were sold for $45 million. Also, there were three land parcels which DDR disposed for $13 million, leading to a total of $58 million worth of sale during the quarter. Year to date, DDR has sold $282 million of assets at the company's share.

Further, 21 operating assets and seven land parcels are under contract for sale, denoting an estimated total price of $505 million at the company's share. The majority of the assets under contract for sale are expected to close in the third quarter. This makes the company head in the right direction to meet its 2016 disposition target of $600–$800 million of asset sales.

Finally, DDR’s diversified portfolio, well-capitalized tenants and long-term leases bode well for the long term. Its portfolio restructuring through selective acquisitions, strategic assets sales and reuse of the proceeds for leverage-reduction support its long-term growth strategy.

But, the near-term earnings dilutive effects of divestitures, competition from other retailers such as e-commerce and catalogs, any rise in interest rate remain as concerns for the company.

DDR Corp belongs to the retail REIT industry along with Regency Centers Corporation (NYSE:REG) , Retail Opportunity Investments Corp. (NASDAQ:ROIC) and Simon Property Group Inc. (NYSE:SPG) .


DDR CORP (DDR): Free Stock Analysis Report

SIMON PROPERTY (SPG): Free Stock Analysis Report

REGENCY CTRS CP (REG): Free Stock Analysis Report

RETAIL OPPURTUN (ROIC): Free Stock Analysis Report

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