- DDR Corp.
-
DDR 
Type Public Traded as NYSE: DDR Industry REIT - Retail Founded 1965 Headquarters Beachwood, Ohio, USA Key people CEO Daniel B. Hurwitz Revenue 
US$$803.069 mil (2010)[1]Net income 
US$251.627 mil (2010)[1]Total assets US$7.77 bil (2010) 7.8%[1]Employees 682 (Jan 31, 2011) [2] Website ddr.com DDR (NYSE: DDR) is an owner and manager of retail shopping centers in the United States. The company was founded in 1965 and is based in Beachwood, Ohio, an eastern suburb of Greater Cleveland. It operates in 41 U.S. states, Brazil and Puerto Rico.[3] After rebranding itself in 2011 DDR adopted the new brand identity "Think Retail. Create Value."[4]
Contents
History
The company's roots go back to a group of companies established by lawyer and single family home builder Bertram Wolstein, an alumnus of Cleveland–Marshall College of Law. In 1965 he switched to commercial real estate and began a partnership with Kmart, with the first one built in 1965.
On September 12, 2011 the company announced plans to change its name from Developers Diversified Realty Corporation to DDR Corp., adopting the NYSE ticker symbol as its name.[5] The name change took effect September 15, 2011.[6] According to CEO Daniel Hurwitz, the company's new focus (value-oriented shopping centers) and simplified strategy necessitated the removal of the words developers and diversified from the name.[4] The change in strategy comes about a year and a half after the company made significant changes to management; In January 2010 it promoted Daniel B. Hurwitz to CEO, prior to that he was president from May 2007.[7] Six months later Mark Bratt joined DDR as executive vice president and chief investment officer.
On September 7, 2011 DDR engaged in an asset swap with Glimcher Realty Trust. The deal saw DDR exchanging its ownership of Kansas City's Town Center Plaza for Columbus, Ohio's Polaris Towne Center.[8]
Sonae Sierra Brazil, with which DDR Corp. has ten shopping centers and three development projects, went public in February 2011 with a market cap of $900 million.[9]
Operations
As of September 30, 2011 the company has been successful in leasing out 93.4% of its portfolio (up from 90.7% in July 2009).[10]
The company's portfolio primarily features open-air, value-oriented shopping centers in high barrier-to-entry markets with stable populations and high growth potential. Core tenants include Wal-Mart, Kohl's, T.J. Maxx, PetSmart, Bed Bath & Beyond, Michaels and Lowe's.[11] As of 2011 the company operates 538 retail properties around the world.[12]
DDR also owns 34% (down from 47.5% in 2010) of Brazilian developer Sonae Sierra Brazil which operates the 500,000 sq ft Manauara Shopping Center in the city of Manaus.[9] The mall opened in 2010 and has a 96% occupancy rate.[13]
Since July 1, 2009 the company has reduced its total debt by approximately 25%, or $1.4 billion.[11] Reasons for that include: The removal from its portfolio of vacant space, 30% of the 7.5 million sq ft of empty space left behind by bankrupt tenants and a 65% decrease in development expenditures.[13]
Partnership with SunEdison to activate solar power projects
In 2009 DDR partnered with solar energy service provider SunEdison in an effort to advance its solar power program. The arrangement benefits SunEdison by giving it the right to use its own systems at 130 shopping centers (which will then generate revenue by being accessible to tenants). The partnership provides DDR with an extra source of operating income (SunEdison will pay for use of rooftop space) and cheaper power (energy expenditures for commonly used areas are expected to be lower). Phase 1 of the project began in New Jersey where eight locations will generate 1.4 KWh per year.[3]
References
- ^ a b c "DDR 2010 Year End 8-K Report". 2011-02-18. http://ir.ddr.com/secfiling.cfm?filingID=950123-11-15307.
- ^ "Developers Diversified Realty 10-K Report". Edgar. 2011. http://files.shareholder.com/downloads/ABEA-2D9PYU/0x0xS950123-11-19812/894315/filing.pdf.
- ^ a b "SunEdison and DDR activate national rooftop solar programme". 2010-01-21. http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/solar/sunedison-and-developers-diversified-realty-activate-national-rooftop-solar-programme.html.
- ^ a b McFee, Michelle (2011-09-12). "Developers Diversified changing its name to DDR, reflecting changes in company strategy". http://www.cleveland.com/business/index.ssf/2011/09/developers_diversified_changin.html.
- ^ "DDR Announces New Name, Tagline and Brand Identity". 2011-09-12. http://ir.ddr.com/releasedetail.cfm?ReleaseID=604523.
- ^ "Developers Diversified Realty Corporation ("DDR") Name Change to: DDR Corp.". 2011-09-09. http://www.cboe.com/framed/PDFframed.aspx?content=/publish/TTStockSM/11-578.pdf§ion=SEC_RESOURCES&title=CBOE%20-%20CBOE.
- ^ "Daniel B. Hurwitz Profile". Forbes. http://people.forbes.com/profile/daniel-b-hurwitz/26122. Retrieved 2011-09-21.
- ^ "DDR, Glimcher Realty planning an asset swap". 2011-09-07. http://www.businessweek.com/ap/financialnews/D9PJP8000.htm.
- ^ a b Jarboe, Michelle (2011-02-02). "Developers Diversified's Brazilian joint venture completes initial public offering". http://www.cleveland.com/business/index.ssf/2011/02/developers_diversifieds_brazil.html.
- ^ "DDR 3Q11 Financial Supplement". http://files.shareholder.com/downloads/ABEA-2D9PYU/1228665151x0x512865/C080DD1A-7B61-4C53-9DD3-2021DD5D3DE2/3Q2011_DDR_Supplement.pdf.
- ^ a b "DDR NAREIT Presentation". http://files.shareholder.com/downloads/ABEA-2D9PYU/1228665151x0x472913/ae691d1e-f876-4fd5-b203-a043085e3e9b/NAREIT_presentation_6_2_11_new_FINAL.pdf.
- ^ DDR.com About Us
- ^ a b "Developers Diversified Year End". 2010-02-12. http://ir.ddr.com/releasedetail.cfm?releaseid=437263.
External links
Categories:- Companies listed on the New York Stock Exchange
- Companies based in Cleveland, Ohio
- Beachwood, Ohio
- Real estate companies of the United States
- Companies established in 1965
- Real estate investment trusts of the United States
- Shopping property management firms
Wikimedia Foundation. 2010.
