Upcoming AWS Coverage on Federal Realty Investment Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 17, 2017 / Active Wall St. announces its post-earnings coverage on DDR Corp. (NYSE: DDR). The Company reported its financial results for the fourth quarter and fiscal 2016 results on February 13, 2017. The retail real estate investment trust (REIT)'s reported numbers lagged behind market estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of DDR Corp.'s competitors within the REIT - Retail space, Federal Realty Investment Trust (NYSE: FRT), reported its Q4 and year-end 2016 earnings on Monday, February 13, 2017. AWS will be initiating a research report on Federal Realty Investment Trust in the coming days.

Today, AWS is promoting its earnings coverage on DDR; touching on FRT. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended December 31, 2016, DDR posted revenues of $232.2 million compared to revenues of $246.53 million for Q4 2015. The Company's adjusted revenues were $226.5 million. The revenue numbers came in below analysts' consensus of $240.1 million.

For Q4 2016, DDR's net income attributable to common shareholders was $28.1 million, or $0.08 per diluted share, compared to $87.87 million, or $0.32 per diluted share, for Q4 2015. Net income attributable to common shareholders for the year ended December 31, 2016, was $37.6 million, or $0.10 per diluted share, compared to a net loss of $94.5 million, or $0.27 per diluted share, for the prior year.

DDR' Q4 2016 operating funds from operations (FFO) attributable to common shareholders was $111.1 million, or $0.30 per diluted share. Including non-operating items, FFO for the reported quarter was $111.2 million and $0.30 per share. The Company's FFO number came in below analysts' forecasts of $0.31 per share. For FY16, the Company's operating FFO was $468.4 million, or $1.28 per share, which is a 4.1% increase over the prior year.

Transaction Activity

During Q4 2016, DDR closed on the sale of 24 operating assets and three land parcels for $532 million, totaling $497 million at DDR's share and bringing the FY16 total to 50 operating assets and nine land parcels for $833 million at its share. These transitions carry a weighted average cap rate of approximately 7.5%. The Company executed 272 new leases and renewals for 1.9 million square feet in the reported quarter and executed 1,221 new leases and renewals for 9.0 million square feet in FY16.

During FY16, the Company acquired two shopping centers for $148 million at DDR's share. So far in FY17, DDR has closed on the sale of three assets for $31 million and are under contract to sell an additional $168 million.

DDR noted that the average rent on new deals for FY16 was more than $19 per square foot, which exceeds the Company' portfolio average by more than 20% and drove its annualized base rent per occupied square foot by 4.7% on a pro-rata basis to $15.46 at December 31, 2016, from $14.76 at December 31, 2015. DDR expects overall rent per square foot to continue to grow in FY17. The Company reported another strong quarter of built in new growth, out built-in growth on new signed leases, which grew 1.4% for both Q4 2016 and FY16.

During Q4 2016, DDR generated same store net operating income growth, excluding Puerto Rico, of 2.5% on a pro-rata basis. The Company generated new leasing spreads of 21.3% and renewal leasing spreads of 8.3% for the reported quarter, both on a pro-rata basis and excluding Puerto Rico. DDR generated new leasing spreads for FY16 of 25.0% and renewal leasing spreads of 8.4%, both on a pro-rata basis and excluding Puerto Rico. The Company achieved a portfolio leased rate of 95.0% at December 31, 2016, compared to 95.4% at September 30, 2016, on a pro-rata basis.

Dividend

On February 10, 2017, in a separate press release DDR declared its Q1 2017 common stock dividend of $0.19 per share. The common stock dividend is payable on April 04, 2017 to shareholders of record at the close of business on March 16, 2017.

Outlook

For FY17, DDR is forecasting operating FFO per share to be in the range of $1.12 to $1.16. The Company is anticipating disposition of $800 million to $1 billion at DDR's pro-rata share, executed ratably throughout the year. DDR is also forecasting acquisition of $100 million for FY17. Same store NOI growth is expected to be in the range of 1.0% to 2.0% for FY17.

Stock Performance

At the close of trading session on Thursday, February 16, DDR Corp.'s stock price marginally fell 0.28% to end the day at $14.49. A total volume of 3.39 million shares were exchanged during the session, which was above the 3-month average volume of 2.83 million shares. The stock currently has a market cap of $5.27 billion and has a dividend yield of 5.24%.

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SOURCE: Active Wall Street