BEACHWOOD, Ohio, 2016-1-5 — /EPR Retail News/ — DDR Corp. (NYSE: DDR) today released guidance for 2016. The Company will hold a conference call onMonday, January 4, 2016 at 5:00 p.m. ET to discuss guidance and the related assumptions. To access the call, dial 877-249-1119 (domestic), or 412-542-4143 (international) at least ten minutes prior to the scheduled start of the call. The conference call webcast will be recorded and available for replay through DDR’s website at www.ddr.com/events.
| Based on anticipated 2015 results and current market conditions, the Company is providing the following full year Operating and NAREIT FFO / Share guidance for 2016: | |
| FFO / Share (Operating) | $1.19 to $1.25 |
| FFO / Share (NAREIT) | $1.19 to $1.25 |
| The Company’s 2016 Operating and NAREIT FFO guidance is based upon the following assumptions: | |
| Dispositions | $600 – $800 million at DDR’s pro rata share, weighted to the first half of the year |
| Acquisitions | $200 – $300 million at a cap rate 75 – 100 basis points lower than dispositions |
| Same Store NOI | +2.5% to +3.5% |
| Leased Rate | 0 to +50 basis points greater at year end 2016 from year end 2015 |
|
Development and Redevelopment |
$190 million placed into service at a yield of approximately 7.0%, which will primarily be delivered during the second half of the year |
| Fee Income | $30 to $32 million |
| Interest Income | $32 to $36 million |
| Interest Expense (GAAP) | $210 to $220 million |
| G&A Expense | Approximately 5% of total revenues, including ventures at 100% share |
| Annual Dividend / Share | $0.76 per share annually, representing 10% annual growth |
| Capital Raising | No major capital raises contemplated |
| Debt / EBITDA | 6.4x – 6.7x, approximately 0.5x to 0.8x lower than the most recently reported consolidated results |
“We are pleased to guide to another year of strong operating results, transactional activity, and increased dividends to our shareholders. The aggressive transactions market encourages us to be a net seller of assets, which weighs on 2016 earnings but should benefit DDR in the future. We continue to take a long term view of performance and intend to position our portfolio and balance sheet to outperform over the course of all economic cycles,” remarked David J. Oakes, President and Chief Executive Officer.
About DDR Corp.
DDR is an owner and manager of 367 value-oriented shopping centers representing 115 million square feet in 38 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.
Non-GAAP Disclosures
FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor Operating FFO represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.
FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments and (iv) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from non-controlling interests and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates Operating FFO by excluding certain non-operating charges and gains. The Company computes FFO in accordance with the NAREIT definition. Other real estate companies may calculate FFO and Operating FFO in a different manner. Operating FFO is useful to investors as the Company removes certain charges and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio.
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; 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, 2014, 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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