CLEVELAND, Oct. 4, 2017 /PRNewswire/ -- DDR Corp. (NYSE: DDR) provided a further update today on its process of providing assistance and support to its personnel in Puerto Rico as well as assessing damage from Hurricane Maria to its assets in Puerto Rico.
"We have now been in contact with all of our team members in Puerto Rico and remain focused on delivering aid to them," commented David Lukes, President and Chief Executive Officer of DDR. "All 12 of our properties are now in a clean and safe condition and we are in the process of making temporary repairs and helping tenants reopen wherever possible. I am incredibly proud of DDR's Puerto Rico team, who have demonstrated courage and resilience in this challenging time, as well as the numerous employees throughout the firm who have worked with remarkable speed and resourcefulness."
Most anchor spaces at the company's 12 Puerto Rico centers are currently open, including 7 of 8 Walmarts, and all Home Depots (2), Sam's Club (1), and Pueblo and Econo grocery stores (3). A significant number of additional anchor openings are expected to take place in the coming days. Most of the company's Puerto Rico outparcel tenants are also currently open and operating. Openings of small-shops at the company's open air assets will generally depend on restoration of utility power, the timing of which is currently uncertain. In addition, there are selective tenant spaces that have been rendered currently untenantable.
Plaza Del Sol, the company's largest asset by Net Operating Income in Puerto Rico, is now receiving power from both generator and utility sources, which is facilitating the reopening of small-shops. Rio Hondo, the company's second largest asset in Puerto Rico, is expected to begin receiving utility power within the next week, enabling small shop openings. The company expects to have additional generators installed at Plaza del Norte, its third largest mall asset in the next several weeks. The company has completed cleanup work at Palma Real and continues to assess necessary repairs. A determination of expected tenant opening dates will be made as further analysis of the repair of this property is completed.
DDR maintains insurance on its assets in Puerto Rico with policy limits of over $350 million for property damage, along with coverage for business interruption. The company's insurance policies remain subject to various terms and condition including a deductible of approximately $6 million.
DDR is an owner and manager of 298 value-oriented shopping centers representing 100 million square feet in 34 states and Puerto Rico. The Company owns a high-quality portfolio of open-air shopping centers in major metropolitan areas that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company actively manages its assets with a focus on creating 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.
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, property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions in locations where we own properties; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions; 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; redevelopment and construction activities may not achieve a desired return 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; the success of our deleveraging strategy; and any impact or results from the Company's portfolio transition or any change in 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, 2016. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
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SOURCE DDR Corp.