BEACHWOOD, Ohio, June 30, 2011 /PRNewswire/ -- Developers Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today that it completed $112 million of asset sales during the second quarter of 2011, of which the Company's share was $87 million. Sales during the quarter included 12 assets, primarily non-prime, and four land parcels. The non-prime assets were predominantly located in tertiary markets with below average demographics. An additional $94 million of non-prime or non-income producing assets are currently under contract for sale, of which the Company's share is $93 million. The Company also announced that it is under contract to acquire two prime shopping centers for approximately $85 million, and currently expects to close these acquisitions in the third quarter of 2011.
Year to date, the Company has generated gross proceeds of $155 million from asset sales, of which the Company's share is $107 million. The Company anticipates that the proceeds from recent and future asset sales will be redeployed into acquisitions of prime shopping centers.
David Oakes, DDR's Chief Financial Officer, commented, "We are pleased with our progress on asset sales, which continue to strengthen our balance sheet. The Company's exposure to non-prime assets has been significantly reduced, and we are encouraged by the recent land sales. Investing capital from these transactions in the acquisition of prime shopping centers, with strong long-term growth prospects, will create future shareholder value, and we expect to continue to make progress in this area without the need for new common equity."
Daniel B. Hurwitz, DDR's President and Chief Executive Officer, stated, "Strategic asset sales continue to contribute significantly to enhancing our overall portfolio quality. Our prime assets are approximately 94% leased, represent over 87% of our total net operating income, average over 300,000 square feet of GLA per property, and enjoy average household incomes of $78,000 and conservatively defined trade areas with an average population of 335,000 people. The vast majority of our major tenants continue to prosper, pursue growth through new locations and we expect our leasing numbers to continue to reflect this momentum."
DDR owns and manages approximately 520 retail properties in 41 states, Puerto Rico and Brazil totaling approximately 127 million square feet. The Company's prime portfolio primarily features open-air, value-oriented shopping centers in high barrier-to-entry markets with stable populations and high growth potential. DDR is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls primarily clustered around Sao Paulo, Brazil. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about DDR is available on the Company's website at www.ddr.com.
SOURCE Developers Diversified Realty Corporation