DDR Completes $699 Million of Transactions in the Third Quarter 2014

Oct 01, 2014

BEACHWOOD, Ohio, Oct. 1, 2014 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that during the third quarter, it closed on the acquisition of eight prime power centers and the sale of seven operating assets and two land parcels, totaling $699 million of executed transactions.

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Seven of the eight power centers that the Company acquired were purchased for $377 million at DDR's share from a joint venture formed with Blackstone Real Estate Partners VII L.P. ("Blackstone") in August 2013. The acquisition increases DDR's exposure to prime markets such as Los Angeles, San Diego, Washington, D.C., and Portland. Six of the seven power centers have a grocery anchor, and over 40% of the portfolio's gross leasable area (GLA) comes from Target, Walmart, Wegmans, Kohl's, Ross Dress for Less, Dick's Sporting Goods, T.J.Maxx, Bed Bath & Beyond, The Fresh Market, and Ulta Beauty.

The eighth asset acquired by the Company in the third quarter is an urban power center located in Philadelphia that is anchored by Bed Bath & Beyond and PetSmart, and features a trade area population of almost 900,000 people which is more than double that of DDR's prime average. The Company is in advanced discussions with a national junior anchor to fill the one remaining vacancy in the center. DDR purchased the asset for $31.5 million.

In addition, the Company remains under contract to acquire the previously announced portfolio from American Realty Capital Properties, Inc. (NASDAQ: ARCP) in a joint venture with Blackstone, expected to close in October 2014.

During the third quarter, DDR also sold seven operating assets, two land parcels, and redeemed its share of the preferred equity in BRE DDR Retail Holdings II for an aggregate $290 million at the Company's share. DDR has an additional 39 operating assets under contract for sale totaling $207 million at the Company's share. Year to date, DDR has sold $826 million of non-prime assets at the Company's share.

"We are pleased to announce another quarter of transactional activity that showcases our ability to source off-market transactions given today's robust pricing environment. Our portfolio upgrade has been dramatic, and we look forward to continuing this transformation as opportunities arise," said David J. Oakes, president and chief financial officer of DDR.

About DDR Corp.
DDR is an owner and manager of 385 value-oriented shopping centers representing 106 million square feet in 39 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.

Safe Harbor
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, including the ability of the joint venture between DDR and Blackstone to successfully complete the acquisition of the portfolio from American Realty Capital Properties, Inc.; 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.

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