Type Public Industry REIT - Retail Revenue US$$1.628 bil (2013) General counsel David E. Weiss | Traded as NYSE: DDR Founded 1965 CEO David R. Lukes Subsidiaries JDN REALTY CORP | |
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Key people Terrance R. Ahern,
Chairman
David Lukes (CEO) Stock price DDR (NYSE) US$ 14.05 -0.02 (-0.14%)7 Mar, 4:00 PM GMT-5 - Disclaimer Headquarters Beachwood, Ohio, United States Profiles | ||
DDR Corp. is a publicly traded real estate investment trust that owns and manages value-oriented, open-air retail shopping centers, or "power centers" in the United States mainland and Puerto Rico. The company was founded in 1965 and is based in Beachwood, Ohio, an eastern suburb of Greater Cleveland. It operates in approximately 40 continental U.S. states and in the U.S. Commonwealth of Puerto Rico.
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.
DDR filed its initial public offering of Common Shares on February 2, 1993. The price at that time was $22.00 per share, and the company began trading on the New York Stock Exchange under the ticker symbol DDR on February 2, 1993.
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. The new name was chosen to represent a simplified strategy, portfolio and capital structure, as the words “developers” and “diversified” no longer accurately describe the company’s focus. Ground-up development of shopping centers is still a part of the company’s business, but does not warrant top billing in the company’s name. Further, the company’s focus on power centers renders the word “diversified” inaccurate. In September 2011, the company also launched a new tagline: “Think Retail. Create Value.” The new tagline was meant to emphasize the company’s objective to see the world through the eyes of its customers – retailers - and that the company’s primary reason for being is to create shareholder value.
In August 2013, DDR and Blackstone Group’s joint venture acquired a portfolio of seven open-air shopping centers from Regency Centers Corporation for $332 million.
In March 2014, DDR agreed to exit its Brazilian joint venture by selling its stake to the firm’s largest shareholder for $343.6 million.
In October 2014, DDR closed on its third joint venture with Blackstone Group, the acquisition of 70 shopping centers totaling 15.7 million square feet for $1.93 billion. The portfolio primarily consists of prime power centers located in Los Angeles, Houston, Denver, Chicago, Atlanta, Washington D.C. and Phoenix and is occupied by retailers such as Whole Foods, Trader Joe's, The Fresh Market, Costco, Target, Walmart, Kohl's, PetSmart, , Bed Bath & Beyond, and the TJX Companies.
In February 2014, David Oakes was appointed as DDR’s president and chief executive officer. Previously, Oakes had served as the company’s president and chief financial officer.
In Q1 2016, DDR reported that due to strong demand in the retail sector, the company would sell between $600 to $800 million of its retail portfolio. The move to sell is an attempt to upgrade the overall quality of its portfolio. The company will be selling its lower class malls.
Operations
As of December 31, 2014, the leased rate of the company’s portfolio stood at 95.7%, up from 90.7% in July 2009.
The company invests in regional power centers located in large and supply-constrained markets occupied by national retailers. Core tenants include Wal-Mart, Kohl's, T.J. Maxx, PetSmart, Bed Bath & Beyond, Michaels and Lowe's. As of December 31, 2014, the company owned and managed approximately 400 retail properties in the continental United States and Puerto Rico.