Zacks_Analysts' Blog : DDR Restructures Portfolio - Analyst Blog

DDR Corp. (DDR) recently announced the acquisition of a shopping center named Polaris Towne Center in Ohio for $80 million and dispensed with assets worth $247 million during the fourth quarter of 2011. The acquisition of the 700,000 square feet center consolidates DDR's position as the major owner and operator of prime shopping centers in the Columbus metropolitan area.

During the fourth quarter 2011, the company divested 20 shopping centers and seven land parcels for aggregate proceeds of $247 million. An additional $89 million of assets are currently under contract for sale. For full-year 2011, the company completed acquisitions worth $270 million and $461 million of dispositions.

The company is currently undertaking a portfolio repositioning strategy, under which it intends to dispose non-core assets and fund future acquisitions with the disposition proceeds. The strategic move is expected to create long-term value for its shareholders through this capital recycling 

DDR Corp. operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, developing, redeveloping, owning, leasing, and managing shopping centers, mini-malls, and lifestyle centers. The company's assets are concentrated in high barrier-to-entry markets with high growth potential and its portfolio is actively managed to create long-term shareholder value.

DDR Corp. currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Kimco Realty Corporation (KIM) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating