BEACHWOOD, Ohio, Jan. 4, 2016 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that it closed on the acquisition of seven prime shopping centers totaling $404 million and the disposition of 12 assets totaling $275 million at 100% ownership during the fourth quarter of 2015. For the full year 2015, the Company closed on $564 million of acquisitions and $1.0 billion of dispositions at 100% ownership.
Fourth quarter acquisition activity:
During the fourth quarter, DDR acquired seven assets for $166 million at the Company's share. The Company acquired Millenia Plaza, a 412,000 square foot power center anchored by Dick's Sporting Goods, BJ's Wholesale Club, The Home Depot, Total Wine & More, and Ross Dress For Less and located next to the Mall of Millenia in Orlando, Florida, for $67 million. The acquisition elevates Orlando to the Company's 6th largest market by pro rata base rent. DDR and an affiliate of The Blackstone Group L.P. also acquired six assets, totaling $13 million at DDR's share. The assets are located in Long Island, Philadelphia, Miami, and Orlando. Blackstone owns 95% of the common equity of the joint venture and an affiliate of DDR owns the remaining 5%. DDR's stake also includes $83 million of preferred equity with an 8.5% annual return.
Fourth quarter disposition activity:
During the fourth quarter, DDR sold nine operating assets and three non-operating assets for an aggregate $211 million at the Company's share. DDR has an additional 17 operating assets and nine land parcels under contract for sale, representing total expected volume of $247 million at DDR's share.
Full year acquisition activity:
For the full year 2015, DDR acquired 10 shopping centers and three outparcels for $326 million at DDR's share. Investments in 2015 acquisitions were entirely funded by proceeds from asset sales, with excess disposition proceeds used to reduce leverage.
Full year disposition activity:
For the full year 2015, DDR sold 66 operating assets and eight non-operating assets for $569 million at DDR's share. The 29 wholly-owned and 37 joint venture assets sold averaged 126,000 square feet and 29 of the 66 assets were located outside of the top 50 MSAs.
Luke J. Petherbridge, chief financial officer of DDR, commented, "Our portfolio upgrade was dramatic in 2015 as we improved our asset base by selling over one billion dollars of lower-quality assets into an environment of historically low cap rates. We expect to continue to take advantage of the competitive transactional market and will use sale proceeds to selectively acquire prime assets and to further reduce leverage."
About DDR Corp.
DDR is an owner and manager of 367 value-oriented shopping centers representing 115 million square feet in 38 states and Puerto Rico. The Company's assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the Company is available at www.ddr.com.
DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as supply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; and the success of our capital recycling strategy. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's Form 10-K for the year ended December 31, 2014, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
SOURCE DDR Corp.