CLEVELAND, Sept. 27, 2017 /PRNewswire/ -- DDR Corp. (NYSE: DDR) provided an 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 12 assets in Puerto Rico.
"We have been in contact with all but one team member in Puerto Rico, and we continue to work to provide basic supplies to our team and their families given the current challenging living conditions on the island," commented David Lukes, President and Chief Executive Officer of DDR. "We also have made steady progress assessing damage to our assets on the island, and are preparing our repair plans. We expect full recovery to span a significant period of time given damage to Puerto Rico's critical infrastructure and the current difficulty procuring building materials and making necessary repairs."
Plaza Palma Real, the company's 448,915 square foot asset located on the southeastern portion of the island, near where Hurricane Maria made landfall, sustained significant damage. Portions of its roof and façade were removed by the storm's powerful winds.
The company's 11 other assets sustained less significant damage, including numerous instances of roof damage and lost HVAC units, roof leaks, missing or damaged pylons and other signage, and a wide range of downed trees and other damage to landscaping. The company is working to clean up debris and make short-term repairs to reopen these assets as quickly as possible. However, it remains unclear when re-openings will occur due to a variety of uncertainties including the availability of power and other utilities.
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.