BEACHWOOD, Ohio, Jan. 6, 2015 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that it closed on the acquisition of 71 prime shopping centers totaling $1.94 billion and sold 41 non-prime operating assets totaling $572 million during the fourth quarter of 2014. For the full year 2014, the Company closed $2.64 billion of acquisitions and $1.63 billion of dispositions at 100%.
Fourth quarter acquisition activity:
As previously announced, a joint venture formed by DDR and an affiliate of Blackstone Real Estate Partners VII acquired 70 shopping centers formerly owned by American Realty Capital Properties, Inc. (NASDAQ: ARCP) for $376 million at the Company's share in October 2014. DDR acquired one additional prime power center for $15 million at the Company's 95% share in the fourth quarter.
Fourth quarter disposition activity:
During the fourth quarter, DDR disposed of 41 non-prime operating assets and seven land parcels, including the previously-announced 11-property portfolio formerly held in a joint venture with Kuwait Financial Centre, for a total of $258 million at DDR's share. Also included in the total is the sale of an 11-property portfolio formerly held in a joint venture with Blackstone Real Estate Partners VII for $8.7 million at DDR's 5% share. The original investment in the Blackstone joint venture included $40 million of preferred equity with a fixed dividend rate of 10%, which was redeemed upon completion of the sale and dissolution of the joint venture in December 2014. The Company has six additional non-prime assets under contract for sale, representing total expected volume of $63 million at the Company's share.
Full year acquisition activity:
For the full year 2014, DDR acquired 83 prime shopping centers for $1.06 billion at DDR's share. Investments in 2014 acquisitions were primarily funded through a combination of proceeds from asset sales and the assumption of existing mortgage debt, with minimal use of the company's line of credit.
Full year disposition activity:
For the full year 2014, DDR sold 82 non-prime operating assets and 16 land parcels for $1.21 billion at DDR's share, including its total investment in Brazil, the repayment of select preferred equity investments, and the sale of its interests in 47 joint venture assets. The operating assets sold had an average size of approximately 142,000 square feet, 42% below the Company's prime portfolio average. DDR also dissolved four joint ventures in 2014, BRE DDR Retail Holdings I, BRE DDR Retail Holdings II, Sonae Sierra Brazil BV Sarl and DDR Markaz II, and completed its exit of all markets outside of North America. Only 32 wholly-owned non-prime assets remain in the portfolio, representing approximately 2% of the Company's gross asset value.
David J. Oakes, president and chief financial officer of DDR, commented, "Our portfolio continues to grow in quality through strategic dispositions and acquisitions, and we are pleased to finish the year as a net seller of assets given the strong pricing environment for our product type. We intend to further upgrade our asset quality through continued opportunistic transactional activity as we near the completion of our non-prime asset sales."
About DDR Corp.
DDR is an owner and manager of 415 value-oriented shopping centers representing 118 million square feet in 41 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, as well as on Twitter, LinkedIn and Facebook.
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 oversupply 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, 2013, 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.