BEACHWOOD, Ohio, Jan. 3, 2017 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced that it closed on the disposition of 27 assets totaling $532 million at 100% ownership during the fourth quarter of 2016. For the full year 2016, the Company closed on $148 million of acquisitions and $1.0 billion of dispositions at 100% ownership with an average base rent per square foot of approximately $11.00.
Fourth quarter activity:
During the fourth quarter, DDR sold 24 operating assets and three land parcels for an aggregate $497 million at the Company's share. Included in the assets sold during the fourth quarter was a portfolio of 16 assets located primarily in upstate New York that DDR sold for $390 million. DDR also has an additional six operating assets and four land parcels currently under contract for sale, representing aggregate gross proceeds of $74 million at DDR's share. DDR did not acquire any assets in the fourth quarter.
Full year acquisition activity:
For the full year 2016, DDR acquired one shopping center in Phoenix, Arizona, and one in Portland, Oregon, for an aggregate $148 million at DDR's share. DDR also is under contract to acquire a Mariano's-anchored center in the Lincoln Park neighborhood of Chicago, Illinois, for $81 million. The Company expects this transaction to close in early 2017.
Full year disposition activity:
For the full year 2016, DDR sold 50 operating assets and nine land parcels for $833 million at DDR's share. Proceeds from asset sales were primarily used to reduce leverage.
Tom August, chief executive officer of DDR, commented, "We made great progress on the final steps of our transition in 2016 through the exit of the upstate New York portfolio, as well as select lower-quality and lower-growth assets that were sold at attractive cap rates. We expect to continue the transactional momentum into 2017 as DDR accelerates its portfolio and balance sheet transition."
DDR will provide 2017 Operating and NAREIT FFO guidance on February 13, 2017, in conjunction with fourth quarter 2016 earnings.
About DDR Corp.
DDR is an owner and manager of 319 value-oriented shopping centers representing 106 million square feet in 35 states and Puerto Rico. The Company's assets are concentrated in high barrier-to-entry markets with stable population 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.
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; redevelopment and construction activities may not achieve 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; the success of our capital recycling 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, 2015. 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.